Tourism and Protected Areas TNC 2007

South America Conservation Region
External Affairs Technical Publication No. 1
TOURISM, PROTECTED AREAS

AND COMMUNITIES:
Case studies and lessons learned from
the Parks in Peril Program
2002 2007
Cartagena de Indias, Colombia

February 14-16, 2007
FROM THE AMERICAN PEOPLE
TABLE OF CONTENTS
Preface 5
1) Overview of Lessons Learned and Recommended Approaches for Managing Tourism to Benefit
Conservation and Communities 7
2) Lessons Learned in the Oyacachi Ecotourism Project, Cayambe-Coca Ecological Reserve, Condor
Bioreserve, Ecuador by Jorge Luis Campaa and Saskia Flores, EcoCiencia 19
3) Community Tourism Experiences of Rumbo al Dorado in the Yanayacu Pucate Watershed of the
Pacaya- Samiria National Reserve, Iquitos, Peru by Maria Elena Lau and Sandra Isola, The Nature
Conservancy 25
4) Ecotourism, Indigenous Communities and Environmental Services: Case Studies in the Ecuadorian
Amazon: Achuar and Huaorani Communities by Arnaldo Rodriguez, Green Consulting33
5) Municipal Regional Parks: A Model of Sustainable Community Development Implemented in the
Atitlan Lake Watershed Multiple-Use Reserve, Guatemala by Marlon J. Caldern Barrios, Asociacin
Vivamos Mejor 41
6) Three Case Studies of Community-Based Ecotourism: Amistad-Bocas del Toro, Costa Rica;
Atitlan Volcanoes, Guatemala; Pacaya-Samiria National Reserve, Peru by Holly M. Jones, EplerWood
International 47
7) Economic Analysis of Tourism in Ecuadors National System of Protected Areas by

Arnaldo Rodrguez, Green Consulting 57
8) Concessions for Ecotourism Services in National Natural Parks of Colombia by

Andrs Guerrero-Alvarado, Fundacin Natura 65
9) Sustainable Finance for Protected Areas: Tourism Entrance Fees in Eduardo Avaroa Reserve,
Bolivia by Andy Drumm, The Nature Conservancy; Kreg Lindberg, Oregon State University; Juan Ren
Alcoba Meriles, SNV; and lvaro Baez, SERNAP 73
10) Use Fees and Financial Sustainability of National System of Conservation Areas of Costa Rica by
Sandra Jimnez, SINAC; and Irene Surez, The Nature Conservancy 83
TOURISM, PROTECTED AREAS AND COMMUNITIES Case studies and lessons learned from The Parks in Peril Program, 2002 - 2007
PREFACE
The Nature Conservancy (TNC) has an
organizational goal - By 2015, The Nature
Conservancy will work with others to ensure the effective
conservation of places that represent at least 10% of
every Major Habitat Type on Earth. While this is an
ambitious goal, we are not starting from scratch
at least 5 percent of the Earths surface currently
falls within a protected area, and we may be more
than halfway to the Goal already for a majority
of the habitat types. However, we recognize
that while some natural areas may be protected
on paper, in reality many lack the management
capacity and resources necessary to really be
able to count them as effectively conserved, or
consolidated.
The Parks in Peril (PiP) Program a Conservancy
partnership with USAID has been working to
consolidate Latin Americas protected areas since
1990. Parks in Peril 2000 is a five year extension of
the original program, and concluded in mid-2007.
As its core strategy, PIP strengthens local partner
organizationsat these sites, building a sustainable
capacity to achieve enduring conservation of
biological diversity. PIP helps consolidate the tools,
infrastructure, staff, institutional and technical
capacity, local support, and financing necessary
to conserve and manage these protected areas.
This effort includes engaging local communities
in management decisions, conservation activities,
and alternative economic activities, fostering
support for the protection of these areas. Working
with partner organizations to promote important
policy changes that make successful long-term
conservation possible is an important part of the
PIP agenda.
The ecotourism and tourism component of
PiP 2000 focused on working with partners,
including conservation organizations,
communities, the private sector, and protected
areas managers around Latin America to advance
tourism that:
Contributes to the financial sustainability of

protected areas;
Reduces threats to protected areas;
Supports rural communities living in and
around protected areas with opportunities to
develop sustainable businesses.
More specifically, the PiP tourism component

supported ecotourism planning and development
in Central and South America at 10 project sites
(out of 12 sites total supported by PiP 2000),
and numerous system level initiatives, while also
providing coordination between projects and
training.
While this publication often utilizes the broader
term tourism because it addresses all visitation
in protected areas, the concept of sustainability
and the development of ecotourism with its key
additional components of intrinsic community
benefits and visitor education, are at the heart
of our objective to maximize the potential of
park visitation as a significant contributor to
conservation.
In February 2007, as the PiP program neared
completion, the Conservancy organized a
conference in Cartagena, Colombia to examine
results, challenges and lessons learned. The
overall conference theme was Ecosystem Services
and one of the three tracks was Tourism and
Ecotourism. Twelve presenters offered case
studies (including three that were not a part of
the PiP program but were thematically related),
and seven were written up as chapters for this
book. Another chapter (Chapter 6) provides the
results of interviews of three tourism case studies
within the PiP program.
The Parks in Peril 2000 program, with a small
portion of its total 5-year investment, has
produced a diversity of ecotourism experiences
throughout Latin America and the Caribbean.
These experiences have focused on developing

the booming demand for visitation to protected
areas as an effective strategy for conservation
and human well-being. There have been some
notable successes, while the primary value of
some others may have been the development
of experience and learning. As a result of
this investment, millions of dollars of new
revenue for protected area conservation
have been generated. Thousands of park
managers, tourism professionals and students,
conservation NGO staff, government technical
staff, and community members have benefited
from training and learning from courses and
publications. Policies have been influenced at
community, local, national, and international
levels. Whats more, the lessons learned
from Parks in Perils tourism and ecotourism

investments have been shared well beyond the
original Latin America and Caribbean focus to
contribute to conservation globally.
Acknowledgements
The authors would like to express their
appreciation for the multiple authors and editors
who made this publication possible, including
Juan Alcoba Meriles, lvaro Baez, Marlon
Caldern-Barrios, Jorge Luis Campaa, Jaime
Cavelier, Megan EplerWood, Saskia Flores,
Andrs Guerrero-Alvarado, Sandra Isola, Sandra
Jimnez, Holly Jones, Maria Elena Lau, Arnaldo
Rodriguez, Arnaldo Rodrguez, Abi Rome, and
Irene Surez, as well as to Rosario Calderon,
Martha Uriona, and Jose Yunis.
Overview of Lessons Learned and

Recommended Approaches for Managing
Tourism to Benefit Conservation and
Communities
This chapter summarizes the main
accomplishments and lessons learned from the
tourism and ecotourism components of the PiP
2000 program as presented at the February, 2007,
Payment for Ecosystem Services and Tourism
conference in Cartagena, Colombia. The chapter
presents new approaches and strategies that the
Conservancy has developed as a result of tourism
work during the five years of PiP 2000 support.
It offers new insights on how to most effectively
ensure that tourism in protected areas benefits
conservation and communities over the longterm.
Tourism and Conservation

The Nature Conservancy promotes ecotourism
as a strategy for realizing the long-term
conservation of biodiversity and maintenance
of healthy ecosystems. Tourism in protected
areas, when successful from a market perspective
and sustainably-operated, provides revenue
for management. It also generates income for
communities and institutions with an interest
in conserving natural and cultural resources.
The projects that comprise the PiP tourism
component were designed to build tourism
management capacity in protected areas and
create and support ecotourism operations
managed by local communities or private
businesses utilizing, and contributing to,
protected areas. Findings are presented under
the two major headings of strengthening local
communities to manage sustainable tourism
operations; and developing financial strategies
for protected areas.
Strengthening Local Communities to

Manage Tourism Operations
Community-based ecotourism is a popular
strategy adopted by conservation NGOs with
the aim of both reducing threats to protected
areas and improving the well-being of local
communities. Its scope of impacts extends far
beyond individual protected areas, influencing
regional and national economies and policies, as
well a countrys international image. The PiP
programs focus on creating and strengthening
local organizations and businesses to manage
tourism in and around protected areas and to
work closely with park managers produced a
variety of successful outcomes.
Accomplishments
In Peru, program interventions included creating
a consortium of non-governmental organizations
(NGOs) and communities to develop and manage
ecotourism in Pacaya-Samiria Reserve. The
Consortium improved tourism infrastructure,
trained local providers in guiding, tourism
management and administration, and developed
marketing strategies and relationships with tour
operators. One of the most valued outcomes was
the creation of a group of committed stakeholders,
collaborating successfully as a result of team
building and training exercises.
In Guatemala, the PiP program helped develop
a system of regional municipal parks in the
Lake Atitlan watershed. Using the San Pedro
Municipal Park as a model, measures were taken

to officially declare a municipal conservation
area, develop a management plan and marketing
strategy for promoting natural and cultural
resource conservation through ecotourism, and
design and implement an ecotourism program
around specific natural, cultural and agricultural
resources. Increased access to the national forest
incentives program also provided income and
incentives for conservation. By establishing a
community tourism network which includes local
NGOs, government protected areas managers,
and national tourism operators, and creating
mechanisms for co-administration of the reserve,
residents committed themselves to ensuring
protection of the protected area while providing
benefits to the community through ecotourism.
In the bi-national Amistad Biosphere Reserve,
comprising protected areas in both Costa Rica
and Panama, the focus was on developing and
strengthening local tourism networks. Training
was provided in tourism planning, language,
finance management, field interpretation,
and above all, institutional strengthening.
Mechanisms were developed to ensure that the
community-based organizations communicate and
coordinate effectively with other institutions. As
a result, community members and organizations
report feeling empowered and more invested in
the conservation of their diverse territories and
cultures. In addition, a site assessment was used
to measure the impacts of visitation on the site
to produce recommendations for more effective
tourism management.
In Oyacachi, Ecuador, the recent completion of
an ecotourism feasibility study and business plan
served to guide a series of community-based
tourism interventions in Cayambe-Coca reserve,
part of the Condor BioReserve. This empowered
the communitys Ecotourism Committee to
create mechanisms ensuring that tourism revenue
contributes to the maintenance of tourism
infrastructure and services. The group worked
to evaluate and redesign tourist services and
attractions based on market and financial analyses,
improve signage and infrastructure, market the

destination to specific market segments, and form

alliances with other institutions for training and
implementation of best practices. The result was
the creation and implementation of a tourism
business model that provides more diverse
and rewarding opportunities for visitors and
community members, alike.
Lessons Learned
Increasing Local Collaboration and Awareness
A number of common themes and lessons
emerged from these projects and the discussions
that took place in Cartagena. First and foremost
is that the creation of networks and alliances
which integrate community organizations,
protected areas managers, local government
representatives and tourism operators is a key
factor for long term success. In other words
there is a need to strengthen the integration
of the tourism value chain both horizontally
(local businesses with each other) and vertically
(local businesses with national and international
operators) and build tourism clusters around
focal attractions in protected areas. The active
participation of a range of interested stakeholders
builds commitment to both the development
process and the results of tourism programs.
By establishing common objectives and using
participatory planning techniques, communities
can begin to take ownership of and responsibility
for tourism operations which benefit conservation
as well as local economic development. At
the same time protected areas managers and
conservation NGOs can focus on managing
natural resources and facilitating research,
education, training and advocacy.
A participatory approach to tourism planning and
management entails the satisfaction of certain
prerequisites. These include good coordination
and open communication. For instance, the
tourism consortium in Pacaya-Samiria realized
the value of hiring a tourism specialist who
understood the environment and culture of
the Amazon and who traveled throughout the
area to provide communication, outreach and
coordination services. And, in Oyacachi ensuring
the transparency of tourism committee activities

was an important factor for success. Participatory
planning and management of tourism in protected
areas offers a much-needed sense of openness and
trust between communities and area managers.
Capacity building for developing technical skills
in tourism management, as well as managerial,
administrative and financial capabilities,
empowers community members to establish
tourism businesses. It also serves to expand
opportunities for local populations, preparing
them to work with local governmental and nongovernmental institutions, as well as in a variety
of businesses complementary to ecotourism.
While tourism operations are designed to
become sustainable, the tourism committee in
Oyacachi realized the need to develop and utilize
fundraising skills to continue to improve their
operations after the end of the PiP program.
Also evident was the need for ongoing training
to improve the quality of tourism services within
community-run businesses and to ensure effective
management over the long term.
Continual education and outreach to community
members and other stakeholders regarding
the benefits of conservation and the links
between tourism and conservation is essential.
Government authorities, in particular, and
especially in Guatemala and Peru, needed
to be courted to ensure their approval and
participation on issues requiring official approval.
In Guatemala, community members who had
previously enjoyed unfettered access to the new
protected area were most resistant to change,
requiring additional attention and awarenessraising.
While effective monitoring was lacking in most
of the projects, the need was evident and there
was a strong desire among tourism committees
and networks to establish impact monitoring
systems as soon as there was sufficient capacity
and financing to do so. The reality is that often

projects do not budget adequately in the feasibility
or planning stage to ensure that funds are available
for this activity.
At the same time, in order to reduce the risk
of creating economic instability, tourism must
not be considered the only means of providing
livelihood or for affecting conservation of natural
and cultural resources. Additional economic
alternatives need to be developed to diversify
local economies as well as to ensure sustainability.
These include handicrafts development,
agriculture, transport services, cultural
institutions, etc. In Oyacachi in particular, the
Ecotourism Committee made a concerted effort
to develop new products, offer relevant trainings,
and market products and services under a green
seal. This resulted in expanding the market
beyond their traditional one of hot springs
enthusiasts, thereby increasing tourism benefits.
Improving Business Planning and Administration Skills
Another common theme was the fundamental
importance of business planning. It is essential
that tourism businesses, including communityowned tourism businesses, be based on adequate
feasibility studies which identify costs, identify
markets and project revenues as realistically as
possible, prior to making the decision to proceed.
This critical step has often been overlooked
by conservation NGOs seeking to support
community business development which can
consequently dash hopes and expectations and
squander scarce resources on business ventures
that lack solid financial grounding. The plan itself
also provides a framework for guiding business
activities and identifying responsibilities.
One of the functions of the plan is to identify how
revenue might be distributed among stakeholders.
In Oyacachi, transparency in business planning
and committee activities was important to
maintain the trust and participation of community
members.
Lessons Learned in Community-Based Tourism

Tourism planning and management in protected areas should involve multi-stakeholder

alliances of community organizations, protected areas managers, local government
representatives and tourism operators.
Coordination and open communication are critical and necessary elements of the
participatory process.
Capacity building for developing technical skills in tourism management, as well as

managerial, administrative and financial capabilities, is needed to empower community
members to establish tourism businesses.
Ongoing education and outreach to local stakeholders regarding the benefits of

conservation and the links between tourism and conservation are essential.
Additional economic alternatives to tourism also need to be developed to diversify local

economies as well as to ensure sustainability.
Preparing a business plan is an essential precursor to investing in tourism businesses.
Ecotourism infrastructure, including healthy and diverse natural areas, must be

maintained in high quality conditions. The costs of investment and operation need to be
included in the initial business planning.
Developing strong relationships with national and international tour operators facilitates
and expands marketing and sales opportunities as well as management expertise.
A thorough understanding of indigenous peoples priorities and interests is essential

when engaging in tourism programs with indigenous communities.
The experience and training offered by PiP have given local peoples a wide range of
transferable skills which can be used to establish other conservation-oriented businesses
and programs.
Business plans need to include all investment

and operational costs including maintenance
of ecotourism infrastructure and impact
monitoring. For example, the tourism council
in Pacaya-Samiria correctly set aside some of
the tourism revenue for maintenance purposes,
thereby contributing to the long-term financial
sustainability of the project. Finally, business
planning must also consider the impacts of
10
tourism on protected areas and identify ways to

finance the minimization of negative influences.
Marketing of any tourism product is fundamental,
yet so often it is neglected in community-based
tourism projects. Many fail to budget adequately
for it and consequently fail due to a lack of
marketing. This is likely because their sponsors
are conservation NGOs who are not familiar with
the rigors of business development. The tourism
councils found it helpful to develop strong

relationships with national and international
tour operators to carry out marketing and
manage sales. In Oyacachi, it was useful to conduct
a market analysis and develop new products and
services geared specifically to desired ecotourism
markets. The creation and diffusion of marketing
materials brochures, flyers, websites, etc. was
another important marketing step they took to
further increase visitation to their site.
While not funded by the PiP program, the
experience of two community-based tourism
operations in the Ecuadorian Amazon provides
valuable relevant lessons, especially for working
with indigenous peoples. The case studies of
ecotourism partnerships between private tour
operators and Huaorani and Achuar indigenous
peoples, respectively, indicate that while the
amount of money generated by ecotourism is
small relative to average local salaries, ecotourism
has provided significant benefits to these
populations and to conservation. These benefits
must be examined within the context and an
understanding of the priorities of many
indigenous peoples.
In the Huaorani community, as well as in other
indigenous Amazonian populations, money is
not a major indicator of well-being. According
to the chapter by Rodriguez in this publication,
the five most important elements for living
well are education for ones children, time to
be with family, good health, access to nature,
and having sufficient food. Money is seen to be
useful to provide education to youngsters and to
buy medicine or access health services in case of
emergencies. It is not, in itself, a sign of success or
happiness. While engagement in tourism implies
more limited time to spend with family members,
these Huaorani and Achuar communities have
found that their ecotourism ventures do result
in improved educational opportunities and
healthcare.
Another significant benefit of ecotourism
development support in the Amazonian
communities is increased capacity in business
planning and management. Traditionally, most

indigenous peoples have had little experience in
business. They have lacked the administrative,
financial management, and communication skills
needed to operate businesses that can function
on national and international scales. The support
provided through ecotourism partnerships,
funded by donor programs such as the PiP
program, and/or with NGOs has allowed local
peoples to gain a wide range of transferable
skills. In fact, as a result of the training and
experience Achuar community members received
through working in tourism, many are developing
additional complementary revenue-generating
activities. Tourism development has therefore
had a multiplier effect by extending conservation
and monetary benefits to larger segments of the
population.
In addition, by engaging in community-based
ecotourism, indigenous people are now better
able to interact in an equitable fashion with the
mainstream economy. They understand the link
between successful ecotourism programs and
conservation, and are adjusting some traditional
practices accordingly. For instance, the Huaorani
are aware of which forest species are tourist
attractions and have reduced hunting of these
animals. The more recent trend to go work for oil,
mining or timber companies is also changing as
ecotourism is seen as an alternative to these socially
disruptive and environmentally destructive revenue
generating practices. Instead, the Achuar and other
indigenous groups such as the Cofan Indians (also
in Ecuador) have turned to tourism. They are glad
to have jobs and to develop professional skills in an
industry that requires protection of their natural
and cultural resources.
Developing Financial Strategies for

Protected Areas
While there is much discourse confirming that
tourism in and around protected areas has
benefited conservation, local communities and
the tourism industry, the costs to biodiversity
resulting from insufficient tourism management
11
are often not clear, nor accounted for. Typically,

government and private funding for management
of national parks and reserves is insufficient to
manage tourism impacts, especially as tourist
numbers increase. There are significant
opportunities for tourism to contribute more
effectively to protected area management costs.
PiP tourism activities have included working
with protected area systems in creating and
implementing revenue generation mechanisms,
including entrance fee and donation programs.
Accomplishments
In Costa Rica, the PiP program supported
developing a financial sustainability strategy for
the national system of protected areas. Previous
research had indicated that existing entrance fee
systems were not reflective of the value of services
provided, nor of user willingness-to-pay. And,
income raised from tourism was not reinvested
sufficiently into the areas where it was generated
and where the need was greatest. Therefore,
the PiP program developed a methodology to
evaluate entrance and other user fees on a case by
case basis, and to train local managers to apply it
in their particular protected areas. To facilitate
buy-in, the process for creating and applying the
economic valuations was consultative, bringing
in park managers, community members, tourism
businesses, and government institutions.
In Ecuadors protected areas system, as in many
others in Latin America, there is a disconnect
between the real costs of tourism management
and the generation and reinvestment of tourism
revenues. A study of the economic value of
tourism in protected areas was conducted in order
to elucidate, with hard financial data, the reality
of this relationship. The study identified the
minimum investment needed to cover the costs of
managing tourism (the threshold of sustainability) and
highlighted complimentary opportunities that could
provide revenue while improving the quality of
the tourism experience and creating opportunities
12
for the tourism industry and communities.

Results indicated that both the natural capital of
the park system and tourism demand are suffering
due to insufficient investment in tourism
management and that revision of fee collection
and reinvestment is needed. But critically, the
study also demonstrates the market was prepared
to pay more for the privilege of visiting Ecuadors
protected areas. This methodology developed
for Ecuador has generated great interest
internationally, and is currently being applied in a
similar fashion in Perus protected area system.
In Bolivia, an evaluation of the pilot entrance
fee program that was previously established with
PiP support at the Eduardo Avaroa Reserve
(REA) examined fee levels and structure, revenue
collection and management, and the perceptions
of stakeholders. The program generated
$750,000 over six years. Recommendations from
this evaluation were broadly shared and discussed
at a major workshop in September, 2005, in
Cochabamba with the Park system director and
management, as well as representatives from
the 12 most-visited Bolivian protected areas
and others. The workshop was a watershed in
tourism management in Bolivian protected
areas, resulting in a commitment to implement
the lessons learned from the REA evaluation at
initially eight additional protected areas, and to
make the necessary policy changes at national
level to facilitate this. Due to the resulting efforts,
within three months a presidential decree was
promulgated, creating the legal framework for this
policy initiative.
Another project which sheds light on tourism
financing for protected areas, though not funded
by the PiP program, was a study conducted in
Colombia on concessions for environmental
services in national parks. It examined the legal,
institutional, economic and environmental
aspects of introducing concessionaires, as
well as stakeholder impacts. A pilot project
implemented in Amacayacu National Park
indicated that concessions can increase park

visitation, improve tourism services and
infrastructure, and create opportunities for
training community members and thus expand
economic opportunities. An equally important
finding was the need to raise public awareness
about concession systems to assure park service
officials and community members that the
private concessionaires were not going to take
away managers jobs, restrict park access or
eliminate benefits to local stakeholders.
In Guatemala, the generation of revenue for
Regional Municipal Parks via park entrance fees
allowed for investment in tourism infrastructure
(visitor centers and a museum) and to hire park
rangers and directors. The development of
these tourism resources was preceded by careful
assessment of the distinct attractions of each site.
As a result, a variety of tourism opportunities
became available for different stakeholders. At the
same time, improvements in park infrastructure
prompted local residents to take pride in their
parks and to value conservation of nature as
well as their own cultures. Decisions about the
distribution and management of visitor fees were
made in collaboration with many stakeholders
including business owners, the guide organization,
artisans, tour operators, local government
and park staff. This ensured a common
understanding, resulting in fewer conflicts and an
increased desire to invest in the future of the park.
Lessons Learned
Several important lessons were learned from
these studies and pilot projects. First and
foremost, it was clear, especially in Eduardo
Avaroa Reserve and in Colombia, that the
implementation and management of user fees
programs can generate significant revenue for
managing protected areas and tourism impacts.
The growing number of tourists, especially from
industrialized nations, who visit Latin Americas
protected areas creates an excellent opportunity,
currently not properly exploited, for significant

revenue generation for conservation.
However, in addition to implementing more
effective, technically based revenue generation
mechanisms, it is critical to ensure resulting
revenue is invested in the sites generating
income in order to, at a minimum, cover the
costs of meeting the threshold of sustainability.
To fail to do so is to condemn the nations
natural capital, especially its natural tourism
attractions, to ruin, with the consequence of
reducing its revenue generating potential from
tourism. Some parks are already experiencing
this decline.
It is important to establish the legal framework
for instituting user fees and that stakeholders
are aware of how fees are collected and applied.
Additional tourism-based mechanisms
including concessions, donations and annual
operating license fees for tour operators, are also
recommended. Laws and regulations are needed
to be able to ensure they are applied efficiently
and equitably. This includes having tiered tariffs
to distinguish between national and developed
country visitors.
In Ecuador, as well as in Colombia, it was found
that the collection and management of user
fees is best delegated to third party entities
trained in financial and tourism administration.
However, to succeed there must be a clear
understanding of the purpose of the fees and
the process used for collection and distribution.
It is important to promote participation,
especially of the tourism industry, throughout the
process of evaluating and developing user fees
systems. Implementation requires consensus
and political support from all stakeholders
politicians, protected areas managers and
institutions, communities, indigenous peoples,
tourism businesses, etc. Ongoing education
is needed to allay fears that the presence of
concessionaires or outside entities leads to the
privatization of parks.
13
Lessons Learned in Tourism and Financial Sustainability of Protected Areas

Tourism revenues should be reinvested in the area where they are generated to
minimally recover the costs of tourism management and ensure the threshold of
sustainability.
A range of tourism-based mechanisms including entrance fees, concessions,

donations and annual operating license fees for tour operators, are available and
recommended as part of a comprehensive revenue generation program.
Collection and management of user fees may be better outsourced to third party
entities trained in financial and tourism administration, thus liberating park staff to
focus on conservation management.
The development and implementation of revenue generation systems must count

on the participation and support of a wide range of stakeholders including system
and site level park managers, the tourism ministry, local government and the tourism
industry.
Ongoing education and outreach with local stakeholders is recommended to avoid

misunderstandings about the collection and use of fees.
Economic and market-based evaluations of tourism in protected areas are needed to

develop effective revenue generation systems.
The Ecotourism Conservation Support

Program (CSP)
While a range of projects were implemented by
Conservancy staff and partners at site and system
level around Latin America, the Ecotourism
Conservation Support Program also provided
overall guidance and support. This support
included providing training and producing
publications to share lessons learned. Most
important among the publications is the twovolume book entitled Ecotourism Development:
A Manual for Conservation Planners and Managers.
The manual was distributed in English, Spanish,
French and Portuguese versions to approximately
10,000 conservation and tourism professionals
and also updated in a 2nd edition. Thousands
more have been downloaded from www.nature.
org/ecotourism and have contributed to making
that website among the most popular of all
14
Conservancy websites. A special print run of

the manual was also financed by the UNDP
for distribution through their own networks.
Training courses globally have included the World
Ecotourism Summit, Quebec, as part of the UN
International Year of Ecotourism, 2002, The
World Parks Congress in Durban, 2003, The
World Conservation Congress in Bangkok, 2004.
At a regional level in Miami, Jamaica, Panama and
Ecuador (Quito and Galapagos) and at a national
level in Bolivia. Other publications, case studies
and reports are listed at the end of this chapter.
Conclusion
As described over the course of this chapter, each
of the projects and case studies included in this
publication generated a series of valuable lessons
learned. Yet while many common conclusions
from project experiences and research findings

were presented (refer also to the boxes above
which summarize the lessons learned), there are
also broader and more over-arching conclusions
that can be made.
this project model once donor funding ends is

less certain. The lessons gained through these
experiences point to three essential elements
needed for success in the future:

Many of the lessons became evident as field

experiences have been examined from a
programmatic perspective. Through the process
of adaptive management e.g. planning and
implementing programs based on research
and existing knowledge, continually assessing
progress, and making adjustments as needed
modifications were made over the course of
the PiP Program which produced more effective
methodologies and practices. This section
identifies conclusions and recommendations at
the programmatic level, offering strategies and
approaches for future investment in protected
area tourism development going forward.
Consistent with the focus of PiP tourism
activities, lessons relate to the following themes:

Community-based tourism which fulfills

objectives of local stakeholders while
supporting conservation;
Conservation finance that ensures tourism in
protected generates economic resources for
protected area management and surrounding
communities; and
Monitoring and evaluation of tourism impacts
to measure program effectiveness and
generate broadly applicable lessons.
Community-based tourism
Over the life of the project, the approach
to supporting community-based tourism in
the program has evolved. While initial PiP
investments in infrastructure, training and the
creation of joint ventures with communities
- e.g. in Pacaya-Samiria National Park in Peru
and the Oyacachi sector of Cayambe-Coca
National Park in Ecuador - have created new
economic opportunities based on protected
area conservation, the long term viability of
An increased focus on setting more realistic

business expectations coupled with greater
investment in business planning.
Capacity building in marketing and increased
attention to the demand side of tourism
rather than the supply-side. Private tourism
operators are essential partners to ensure
market success.
Recognition that in some cases the benefits of
community-based tourism on the local-level
may be non-monetary and social.
The focus of more recent projects is to support

communities in their own efforts to create
business-oriented ventures. Greater emphasis
is placed on developing sound business
expectations among the members of communitybased tourism alliances, on providing training
in marketing and business planning, and on
encouraging and facilitating links with private
tourism companies.
Ecotourism Development: A Manual for Conservation
Planners and Managers, Volume 2 provides detailed
guidance for developing tourism programs
with both an effective conservation as well as a
solid business foundation. It recommends the
development of two types of plans: an ecotourism
management plan which identifies where and
how tourism will be managed in a protected area,
and a business plan which examines economic
feasibility, markets and revenue outcomes. Figure
1 below graphically depicts this comprehensive
step by step approach towards tourism and
conservation planning.
In addition to evolving a more business-oriented
approach to tourism in protected areas, the PiP
program has also demonstrated the importance of
non-monetary measures of sustainable tourism.
For example, when considering tourism benefits
to local populations, it must be recognized that
15
for many rural communities money, per se, may

not be the most important priority. Rather,
local concerns may revolve around health,
education, conservation of natural and cultural
resources, and family or community well-being.
When tourism contributes toward these ends,
community members may be satisfied even when
larger monetary gains do not result. These less
quantifiable values were reported among the
results of many of the community-based tourism
projects which the PiP program supported.
However, these situations should be carefully
evaluated prior to investment if these non-financial
goals are in fact the primary objective rather than
a secondary outcome. It will also be necessary to
address the long-term financial viability of such
an approach and to compare this with potentially
alternative ways of achieving the same outcomes,
e.g. making direct payments for conservation.
It is equally important to note that through

ecotourism, community members have become
empowered with transferable skills and as stronger
advocates for conservation. Through engagement
in tourism, they are supporting their families,
providing education and health benefits to their
children, developing new business opportunities,
and affecting change in their communities. At
the same time, they are committed to conserving
the natural and cultural resources that are part of
their heritage. They are becoming conservations
strongest supporters, and are developing skills
to work with protected areas managers, local
governments, businesses and other members of
civil society to assure that tourism creates value for
themselves and protected areas. In some cases,
this includes applying their newly-acquired skills
closely associated with conservation values - to
other places and enterprises beyond tourism.
Figure 1: Diagram of the Ecotourism Management and Development Planning Process
16
This diagram summarizes the steps involved in the ecotourism management and development planning process.
At sites where tourism is not developed, but has been identified as a potential strategy, the process begins with
a preliminary site evaluation. In cases where existing tourism has been identified as a threat, the process is
undertaken to determine how ecotourism can be managed as a conservation strategy.
Financial Sustainability
Within the area of conservation finance, the
emphasis has shifted from working at the level
of individual protected areas to the national or
system-wide level while also examining a broader
range of income opportunities. The creation of
models for implementing entrance fees systems in
Bolivia, based on the work done at Eduardo Avaroa
Reserve, or on concession systems in Colombia
e.g. at Amacayacu National Park - informed the
implementation of user fee programs across entire
national protected areas systems. In addition, the
studies focusing on the tourism revenues and costs
of the Ecuadorian protected area system, and on
entrance fees in the Costa Rican protected area
system, provide financial data and methodologies
for designing and implementing effective systemwide income generation programs.
To provide recommendations for how tourism
can contribute to the financial sustainability
of protected areas, economic valuations and
some business planning need to be conducted
to determine market demand, appropriate fee
levels, and revenue collection policies, protocol
and distribution. They must be guided by the
following underlying principles:
The threshold of sustainability of each
protected area must be met. That is, a
minimum level of investment is needed
to cover the cost of tourism management
in protected areas that provides the
infrastructure, training, and services needed
for visitors to have a positive experience
- without compromising the ability of
managers to protect the area.

Complimentary services, sanctioned by

protected area management plans, should
be offered. These include lodging, food,
and rental of equipment which enhance
visitor experiences and create economic
opportunities for local communities and
businesses.
When conducting such analyses, it is important

to work with multi-stakeholder groups so that
appropriate organizations from both private and
public sectors are informed and strengthened
to implement fee collection and usage. At the
same time, close communication with community
members is recommended to ensure they too
support the system and can benefit from it.
Monitoring and Evaluation
Monitoring and evaluation of tourism impacts,
achievements and challenges is a critical practice
often left unimplemented. It is essential not only
to ensure that project objectives are met, but also
to generate lessons learned. Once indicators for
success and criteria for their measurement are
developed, project results can be better described,
measured and analyzed. This assessment of
outcomes becomes a useful resource for the
adaptive management of existing projects as well
as for informing and improving the design and
management of other projects.
Therefore, future investments in developing
tourism to protected areas will establish a
set of common indicators and criteria which
can be used for monitoring and evaluation
and applying lessons learned. It will include a
system of established formats for measuring and
recording results. At the outset of individual
projects, environmental, and socio-economic
data will be collected to develop baseline
information on relevant natural and cultural
factors. Methodologies will then be developed to
define clear, measurable objectives and a process
for assessing their achievement. Findings and
lessons learned will be shared at forums to
generate discussion among project stakeholders,
and be put in writing and disseminated to
wider audiences. In this way, the value of onthe-ground experiences in implementing new
approaches to generating tourism revenue and
empowering local populations through tourism
will be enhanced and will serve to guide future
program activities.
17
The Future
In addition to the educational value of monitoring
and evaluation for improving conservation and
tourism practices, there can be economic and
political value to the data gathering process. By
quantifying the contribution that protected
area tourism makes to the local and national
economies, the opportunity exists to build a
stronger public constituency for conservation
through tourism, and to pursue significant public
and private funding opportunities to realize this
vision based on this economic justification.
The revenue generated through these
investments in tourism to protected areas - for
the protected areas system and national tax base,
as well as for communities and businesses and
- must be evaluated, disseminated and leveraged
for conservation purposes. Such analyses can
lend strong support for increasing public and
private investment in protected areas. Action
plans which ensure the effective management of
tourism in protected areas offer opportunities
for income generation on a national level, as
well as the mobilization of donor funding
for supporting the long term value of this
income source for local people and biodiversity
conservation.
Tourism and Ecotourism Publications

of the PiP 2000 Program
The following publications may be downloaded
free of charge from www.nature.org/ecotourism:
18
Ecotourism Development - A Manual for Conservation

Planners and Managers

Volume I - An Introduction to Ecotourism Planning,

First and Second Edition, Drumm, A. and Moore,
A., 2002, 2005.
Volume II - The Business of Ecotourism Development

and Management, Drumm, A., et. al. 2004.

Ecotourism Impacts Monitoring: A Review of Methodologies
and Recommendations for Developing Monitoring
Programs in Latin America, Rome, A., 1999.
The Conservation Finance Guide: Toursim-Based User
Fees, The Conservation Finance Alliance, 2004.
Tourism Impact Monitoring and Management in
Protected Areas - Workshop CD, Drumm, A., Jim
Wurz, Abi Rome, et. al., 2003.
Sustainable Finance for Protected Areas: Tourism
Entrance Fees at the Eduardo Avaroa Reserve, Bolivia,
Drumm, A., 2004.
Sustainable Finance for Protected Areas: Visitor Donations
at the Islas del Golfo Reserve, Mexico, Drumm, A.,
Terborgh, J., 2005.

Visitor Use Fees and Concession Systems in Protected
Areas: Galapagos National Park Case Study, Silvia P.
Benitez, 2001.

Visitor Use Fees in Protected Areas: Synthesis of the
North American, Costa Rican and Belizean Experience,
Brown, C.R., 2001.
LESSONS LEARNED FROM THE ECOTOURISM

PROJECT IN OYACACHI, CAYAMBE-COCA
ENVIRONMENTAL RESERVE, CONDOR
BIO-RESERVE, ECUADOR
Jorge L. Campaa and Saskia Flores, EcoCiencia
1. DESCRIPTION OF THE CASE

STUDY
SUMMARY
This paper describes the activities and
achievements of an ecotourism project in the
Oyacachi Thermal Waters Complex, which is part of
the Cayambe-Coca Reserve in Ecuador. In 2000, the
community of Oyacachi developed a management
plan as a tool for promoting development without
damaging natural resources. The plan included a
feasibility study, a tourism plan, an architectural
plan, and a capacity-building and training program.
The feasibility study revealed that one of the
greatest weaknesses of the project was its lack
of a reinvestment strategy, which threatened the
sustainability of the ecotourism initiative. That
assessment led to the drafting of a business plan
for the nancial and programmatic management
of the ecotourism initiative. The project established
new ecotourism products such as guided walks
and visits to the Maucallacta ruins, provided
training to the Ecotourism Committee, updated
the operations manual, published dissemination
materials, arranged with a tour operator to promote
the location, designed and set up signposts in the
tourism site and along the trails, and built a small
structure at the entrance to the hot springs to
encourage visitors to the pools to purchase other
products in addition to visiting the hot springs. In
future, the plan is to expand the tourism operation
to new market segments, establish a closer
rapport with organizations that provide training
and technical assistance, and identify new sources
of funding to support the consolidation of the
ecotourism project and promote the participation of
a larger number of local stakeholders.
The Kichwa (or Quechua) community of

Oyacachi is located at an altitude of 3,200
meters above sea level in the Eastern spurs of
the Andes, in the province of Napo, Ecuador.
The territory covers 44,600 hectares and is part
of the CayambeCoca Environmental Reserve
(RECAY). Oyacachi is inhabited by around 100
families totaling about 500 individuals. Livestock
and the raising of domestic animals are among the
main economic activities. Inhabitants also engage
in subsistence agriculture and the production of
handicrafts. Since 1997, local stores have been
selling basic staples, and some people work in
drinking water projects, sh farming, conservation,
and tourism.
Since the Thermal Waters Complex in Oyacachi
was built in 1999, tourism has developed in
an almost spontaneous manner. The sector is
based on the recreational and medicinal use of
the thermal waters, the scenic landscape, the
conservation areas, and local culture.
Ecotourism businesses are mostly communityand family-based, and are seen as a conservation
strategy for the territory and particularly the
RECAY, as well as an income-generating activity.
The role of ecotourism in the local economy is
signicant; agriculture is largely aimed at local
consumption, and livestock is diminishing in
importance.
19
2. PROJECT ACTIVITIES
In 2000, Oyacachi prepared a management
plan to promote community development
without damaging natural resources. Since
2001, with the support of several organizations,
the community has been working to improve
some aspects of the plan. The Parks in Peril
Program (PIP) at the Condor Bio-Reserve
is among the entities that have supported
the community in the implementation of its
management plan, particularly the ecotourism
project. The following activities have been
carried out:
1. A feasibility study was carried out on
promoting ecotourism in Oyacachi.
It included a market study, a financial
assessment, a social assessment, and a study
on the areas carrying capacity and potential
tourist sites.
2. A tourism plan was developed. It identified
and evaluated tourist attractions in the area,
including scenic routes, and designed and
built nature trails.
3. An architectural plan was devised, based
on an evaluation of the existing local
infrastructure (the Thermal Waters
Complex). It led to a proposal to remodel
the Complex, and included the design of a
lodging area, a restaurant, changing rooms,
and other facilities.
4. A capacity-building and training program
was devised and implemented that included
an assessment of tourism-related training
needs in the community, as well as training
activities in various other fields.
20
3. PRELIMINARY RESULTS DESIGN

AND IMPLEMENTATION OF A
REINVESTMENT STRATEGY
One of the greatest weaknesses detected
during the strategic planning and economic
analysis of ecotourism in the area was the lack
of a reinvestment strategy. Only a minimal
percentage of the income generated by tourism
was being reinvested in the maintenance or
improvement of infrastructure and services.
This threatened the sustainability of the
ecotourism initiative.
The technical team of the Parks in Peril Program,
together with the local Ecotourism Committee,
proposed an investment strategy that would
allocate a percentage of the profits derived from
the hot springs to such activities as improving
the infrastructure of the Thermal Waters
Complex, maintaining the scenic routes, and
continuing with the training of the field teams.
In workshops involving the Ecotourism
Committee and local authorities, it was decided
to develop a business plan. This document,
which was much more ambitious than a
simple reinvestment strategy, included the
following: (a) the products to be offered by the
Ecotourism Committee, (b) a demand analysis
based on surveys of foreign tourists in Otavalo
and potential national tourists in Quito, (c) an
estimate of the costs involved, (d) a marketing
strategy and (e) a financial plan. Many of
these elements had already been defined by
the Ecotourism Committee as part of its PIP
Program. However, they were greatly refined
and expanded in the Business Plan, which will
serve as implementation guidelines for the
Committee.
DEVELOPMENT OF NEW PRODUCTS AND

A SALES STRATEGY
The bottleneck that often obstructs the success
of many ecotourism projects is the inefcient
marketing of the product. To a certain extent,
that is what happened in Oyacachi with some of
the trails that were designed and built earlier.
Products were designed that were not targeted
at the tourists that visited the community.
Meanwhile, no efforts were made to place those
new products in the market to attract the people
who might have been interested in them.
In this phase, new products were designed based
on a market analysis and nancial study (as
contained in the Business Plan), increasing the
likelihood that marketing would be successful
and it would nally be possible to consolidate
Oyacachis green image, sell products other
than the hot springs, and attract a more upscale
economic segment more attuned to conservation
and indigenous cultures. The new products were
the following:
1.
2.
3.
4.
Visits to the Maucallacta Ruins

A Wetlands Trail around the RECAY lake
system.
An Enchanted Walk to Laguna Encantada
(Enchanted Lagoon).
Los Yumbos Trail between Oyacachi and El
Chaco.
Sales and Marketing Materials
Two sections of the Business Plan outlined

the sales plan. The rst dealt with promotion
(which is discussed in greater detail below in
the section on Project Promotion); the second
contained the marketing strategy. This strategy,
which determines how and where sales will
be pursued, proposed establishing an alliance
with an ecotourism operator to secure a greater
inow of visitors. The Ecotourism Committee
has come to a verbal agreement with a Quitobased operator called Tropic. According to the
agreement, Tropic must take charge of promoting
the new products while the community will
handle the local operation. The agreement will
be implemented informally over a trial period,
after which it will be formalized through a
written contract.
SUPPORT FOR THE CONSOLIDATION OF
INFRASTRUCTURE AND SERVICES
Offering appropriate infrastructure and services
is critical for any ecotourism project. Even
though the Oyacachi initiative had been in
operation for several years, many improvements
were needed. Since the PIP Program did not
have funds to invest in infrastructure, the actions
implemented were managed by the Ecotourism
Committee, funded by the Municipal Council,
and often supported by the community with
volunteer labor.
An idea that had always been on the agenda
of the Ecotourism Committee and the PIP
Program was to set up a small tourism ofce
where the community could offer their products
and provide information to visitors. This was
nally accomplished and the Committee,
together with the Municipal Council, built
a small structure at the entrance to the hot
springs to attract visitors and encourage them
to purchase other products in addition to the
hot springs. The ofce will distribute all the
promotional material that has been produced,
21
such as ecotourism leaflets, brochures, and

institutional information packages.
Providing signposts was another priority,
particularly to meet the needs of first-time
visitors to Oyacachi. With support from
the PIP Program, the following signs were
designed and set up: three road signs on the
Larcachaca-Oyacachi road, a welcome sign,
signs providing historical information on the
ruins and facts about the hot springs (such as
the chemical composition of the water and its
health benefits), a sign detailing the rules that
visitors to the hot springs must follow, two
corporate signs (one for the Tourism Office and
another for the Handicrafts Center), as well as
a sign along the Maucallacta trail indicating the
location of the ruins. These signs complemented
the ones set up in the community restaurants
and stores.
Another aspect of the project involved the
design of a tourist promenade. This was carried
out by an architecture student, Paola Meneses,
as part of her graduation thesis. The proposal
was to build a handicrafts market with a well
defined personality along the road to the hot
springs, using local materials, where handicraftmakers and food sellers could operate. Ms.
Meneses also provided technical advice to the
hotel owners on how to improve their facilities.
With regard to training, a strategic alliance
was established with the Esquel Foundation,
which provided the Ecotourism Committee
with training based on an interesting approach
that always resulted in a concrete product.
For example, while learning about planning
issues, the Committee updated its mission,
vision, and strategy documents. Other more
practical courses included cooking and best
environmental practices.
22
Within the framework of the PIP Program,

training in action was provided to the
Ecotourism Committee tour guides along the
new trails designed for the hiking products. A
team of 14 individuals walked along these trails
(Papallacta-Oyacachi, Oyacachi-El Chaco) in
the company of an expert on trail tourism who
provided them with new skills such as how to
attend to tourists in difficult conditions, how
to prepare meals en route, how to organize
the logistics of the trip, and what type of
information to provide to tourists.
FOLLOW-UP AND MONITORING SYSTEM
In an ecotourism project, the implementation
of best practices is essential. The Rainforest
Alliances Guide for Sustainable Tourism Best
Practices, a guide for small and medium-sized
businesses, was incorporated into similar
material prepared earlier, and adapted to the
needs of the Oyacachi project.
Personalized work was carried out with each
of the services associated with the Ecotourism
project in order to design and produce operations
manuals that would help improve services
while providing guidelines for a socially and
environmentally responsible operation. The
following handbooks were produced:
1. Operations manual for the Oyacachi
Ecotourism Committee
2. Operations manual for the tour guides
3. Operations manual for restaurants
4. Operations manual for hotels
5. A brochure on the code of conduct that
visitors must adhere to, which will be
handed to the tourists when they visit the
Tourism Office
PROJECT PROMOTION
The marketing strategy is very closely linked
to the promotion of the project. Although
the Oyacachi Ecotourism project had already
developed several promotional tools, the
Business Plan provided a more coherent
framework for how and where to use these,
depending on the target group. One example
is the Web site, which was modied to provide
much more information about the new products
as well as about conservation efforts by the
community and their partners; its visual design
was also improved. It was translated into
English in order to attract more foreign tourists,
particularly those who rely on the Web to make
travel decisions.
In the case of national tourists, the study carried
out to devise the Management Plan found that
a signicant component of the strategy would
require printed materials such as brochures,
posters, and an information package promoting
the new products and describing the community

and its main attractions. In addition, a kind of
poster was designed for restaurants and hotels to
display the price of their products and services.
Finally, but no less important, business cards and
stationery were designed and produced for the
members of the Ecotourism Committee.
4. CURRENT CHALLENGES AND

PROPOSED SOLUTIONS
A signicant challenge is to expand the tourism
operation into new market segments. While
establishing an agreement with a tour operator
was the main recommendation, the Business
Plan also suggested the following actions: (a)
promoting the new products at the Oyacachi
Tourism Ofce; (b) disseminating information
through an English-language Web site (as
described in a previous section); (c) arranging
bus rides at least three days a week between
Oyacachi and Otavalo; and (d) establishing
another alliance with an operator based in
Otavalo.
Oyacachi Web Page to Promote Tourism
23
It is important to strengthen the Ecotourism

Committee. Closer links should be established
with organizations that provide training and
technical assistance in order to contribute to
ongoing capacity-building and training of the
committees members.
Given that the activities of the Parks in Peril
Program in the Condor Bio-reserve are coming
to an end, the Ecotourism Committee and the
community in general must identify new sources
of funding to support the consolidation of the
ecotourism project and promote the participation
of a larger number of local stakeholders.
5. LESSONS LEARNED
The consolidation of the ecotourism project,
by formalizing the sale of products through
strategic partners, is crucial to improving income
generation in the community and compensating
for the economic losses caused by the so-called
bear-cattle conflict (in which Andean bears
attack cattle that stray into their territory). It is
also essential to strengthen the links between
ecotourism and conservation, which are not very
solid in practice (Flores, 2007)
Transparent management strengthens
participation. From the beginning, when the
Ecotourism Group was established by an
agreement of the Community Council, the latter
has supported the Groups activities.
24
New ideas and approaches are also required

to produce significant change. The people of
Oyacachi have realized that for ecotourism to
expand there is a need for new products and
services.
Another lesson learned involves the distribution
of the benefits. In the process of designing the
Business Plan and other management tools, it
became clear that the larger the number of local
players taking part in the ecotourism project, the
greater its sustainability.
Oyacachi residents are increasingly aware
that promotion is a key factor to expand the
ecotourism business. The new products that have
been developed recently, together with those
existing previously, must be promoted with a
clear idea of which market segments are being
targeted, and which media should be used for
targeting them.
6. REFERENCES
Drumm, A. and A. Moore, 2002. Ecotourism
Development, A Manual for Conservation Planners
and Managers, Volume 1 An Introduction to
Ecotourism Planning. The Nature Conservancy,
Arlington.
Flores, S. 2007. Informe final Proyecto Oyacachi,
EcoCiencia, Quito.
THE RUMBO AL DORADO COMMUNITY

TOURISM EXPERIENCE IN THE YANAYACU
PUCATE WATERSHED OF THE PACAYA
SAMIRIAIQUITOS NATIONAL RESERVE, PERU
Mary Elena Lau, ProNaturaleza, and Sandra Isola,
The Nature Conservancy

STUDY
SUMMARY
This paper presents the results of the Rumbo
al Dorado (RaD) community tourism project in
Pacaya-Samiria (RNPS) National Reserve, Peru. The
purpose of the project was to lay the foundations for
developing ecotourism as an economic supplement
to the biodiversity conservation activities carried
out by the local population. In order to meet this
objective, it was considered necessary to develop
tourism management capacity, enhance local
infrastructure, and promote tourism operations. In
2001, in coordination with the National Institute for
Natural Resources (INRENA), three tourist ledges
were built along the Yanayacu Pucate watershed
or drainage basin. In addition, associations were
established for the implementation of tourism
activities. During 2003-2004, a training plan was
devised that emphasized basic concepts. A second
training module was implemented in 2005, focusing
on such aspects as tour guiding, interpreting,
and tourism management. In 2006, the priority
was to integrate Rumbo al Dorado into the local,
regional, national and international tourism markets.
Agreements were made with tour operators abroad,
bank accounts were opened, and a publicity
campaign was launched. Between 2002 and 2007,
the project was implemented with the assistance and
participation of several NGOs and national nancial
institutions. In the medium term, the most signicant
challenges are the management of the operation
by the local associations (which already own 90 per
cent of the property), greater participation by local
communities in tourism activities at the RaD, and
greater participation by local, regional and national
authorities in community tourism as an economic
alternative for the communities and as a mechanism
for biodiversity conservation.
The Pacaya Samiria National Reserve (RNPS)

is located in the region of Loreto, in Perus
Northeastern Amazon region, and comprises the
provinces of Alto Amazonas, Loreto, Ucayali and
Requena. It is bordered by the Maraon River to
the north and the Ucayali River to the south. The
reserve, covering an area of 1,478,790 hectares,
was established in 1972 with the aim of protecting
biological diversity and managing natural
resources for the benet of the local population.
In 1982, its area was expanded to 2,080,000
hectares, covering 6 per cent of the Loreto Region
and 1.5 per cent of the national territory.
The RNPS is classied as a Humid Tropical
Forest Area, with high temperatures (20.1C to
33.1C) and high levels of rainfall (2,000mm to
3,000mm), humidity and evapotranspiration.
(INRENA, 2000.) These conditions translate
into a great diversity of wildlife: 439 bird species,
102 mammal species, 69 reptile species, 58
amphibians, 256 sh species and 1,026 plant
species, both wild and cultivated (Rodrguez et al.,
1995). Three watersheds or river basins crisscross
the RNPS: Samiria, Pacaya and Yanayacu Pucate.
These watersheds are characterized by highly
pronounced hydrological cycles or ow variations
that determine local ecological dynamics and
the populations various economic activities. The
RNPS is of major importance for conservation,
given its high diversity of wild ora and fauna. The
area also has a great wealth of hydro-biological
resources, which play an essential role in various
ecological processes and provide a source of
25
food for the local population. The RNPS value

is further enhanced by the large extensions of
palm-tree forests that are home to significant
populations of peccaries, tapirs, and deer. The
reserve also protects a variety of threatened
species, including macaws, black caimans
(Melanosucus niger), manatees, river turtles, otters,
pink Amazonian dolphins, and tree species such
as Honduras mahogany (Swietenia macrophylla),
Carapa, and ivory-nut palm.
Some of the main threats include overexploitation
of fisheries and the extraction of palm trees, turtle
eggs, and fine timber. These activities reflect
a lack of awareness among the population that
lives within the reserve and in the buffer zone
regarding the importance of conserving natural
resources. It is therefore essential to provide
them with other economic alternatives that will
allow them to improve their quality of life while
managing natural resources more responsibly
and conserving the biological diversity of the
protected area for their own benefit.
In 2000, with funding from USAID, IRG began
implementation of the project Developing
Ecotourism in the Yanayacu Pucate Watershed
in the Pacaya-Samiria National Reserve. The
purpose of the project was to lay the foundations
for the development of ecotourism as an economic
supplement to the biodiversity conservation
activities carried out by the local population. In
order to meet this objective, it was considered
necessary to develop tourism management
capacity, enhance local infrastructure, and
promote tourism operations.
That same year, the Rumbo al Dorado (RaD)
Consortium was established with three local
associations COMAPA Veinte de Enero, UPC
Yarina and UPC Yacu Tayta as well as two
NGOs: ProNaturaleza and Green Life.
26
In 2001, in coordination with the National

Institute of Natural Resources (INRENA),
three tourist lodges were built along the lower,
middle, and upper basins of the Yanayacu Pucate
River. Environmental impact assessments were
carried out and the participating associations
were organized to implement tourism activities.
During 2003-2004, efforts focused on
strengthening local capabilities. A MediumTerm Training Plan (2 years) was designed
in coordination with the RNPS, the Spanish
International Cooperation Agency, and the
Regional Directorate of Foreign Trade and
Tourism (DIRCETUR). The Training Plan
concentrated on basic concepts such as tourism in
protected areas, tourism awareness, tourism and
community development, and information and
interpreting services.
In 2005, the second module of the Training Plan
was implemented, focusing on the role of guides,
interpreting, and tourism management, with the
aim of providing specialized services to visitors.
In 2006, the priority was to insert Rumbo
al Dorado into the local, regional, national
and international tourism markets. The RaD
operation was formalized, agreements were
reached with tour operators abroad, bank accounts
were opened, and publicity activities were carried
out. At the same time, infrastructure maintenance
and training efforts continued to ensure the
quality of the services offered.
Between 2002 and 2007, RaD implemented
its activities through the Parks in Peril
Program, funded by USAID and The Nature
Conservancy. Support was also provided
through the Agreement for the Conservation of
Tropical Forests, managed by PROFONANPE.
In both cases, ProNaturaleza was a strategic
partner in the execution and coordination of
field activities.
TIMELINE
PENDING MATTERS
1.
A Tourism Operation Plan. An operational plan

already exists, with information about tourism
circuits, plans of the visitor lodges, carrying
capacity, plans for flora and fauna sampling,
and an environmental impact statement.
However, it is necessary to update the
information in line with current demand and
the services that RaD is able to provide.
2. An Impact Monitoring Plan. At the start of

its operations, RaD produced an Impact
Monitoring Plan. Unfortunately, it has not
been implemented due to the lack of local
capacity and financial resources.
3. A Management Monitoring Plan. Every year,
RaD members agree upon a work plan. The
plan is analyzed at the end of each year to
determine whether the goals were met, and to
propose strategies with to deal with obstacles
encountered along the way. However, it is still
necessary to design a long-term monitoring
plan.
CONSTRAINTS
The main constraints included the following:
1. Many local community members lacked I.D.
and other documents necessary to obtain
corporate status and operate as a business.
2. No advice was available on ways to
redistribute accommodations to provide
greater comfort while adhering to the
construction area limits decreed by local
authorities.
3. Lack of commitment by local inhabitants in
providing their labor for the construction
tasks required in the field.
4. Basic capabilities among the population were
inadequate; this meant applying different
methodologies and searching for specialized
instructors.
Initially, control of the project was distributed

as follows: 34 per cent ProNaturaleza, 33 per
cent Green Life, and 11 per cent for each local
association. It was agreed that these percentages
would be readjusted over three years, until parity
was achieved among all the members (20 per cent
each). Since 2005, the local associations have held
90 per cent of the controlling shares, and the
remaining organizations account for remaining
10 per cent. During the annual meeting in 2005,
it was agreed that by 2009 the local associations
would have full control of the property.
In the first few years, the focus was on capacity
building, assisting the local organizations to
become legally constituted, consolidating their
tourism operations, and promoting RaD. Much of
this work was accomplished, but certain aspects of
training and the market insertion of RaD are still
pending.
Recent efforts have concentrated on capacity
building and the transfer of management (sales
and services) to local associations is underway.
Promotion and market insertion of Rumbo al
Dorado in national and international markets have
also been a priority.
3. PRELIMINARY RESULTS
FORMALIZING THE RUMBO AL
DORADO INITIATIVE
1. RaD was formally registered with the
Regional Tourism Directorate and PromPer,
the highest governmental authorities
responsible for regional and national tourism,
respectively.
2. Registration and certification of the operation
by the Regional Tourism Directorate, the
highest regional tourism authority.
27
3. Agreements were made with travel agencies

to promote the product nationally and
internationally. For example, Rumbos Travel
will sell tour packages in the United States,
Germany, Spain and Japan.
4. Current accounts were opened in local and
foreign currencies.
INFRASTRUCTURE MAINTENANCE
Although some of the profits were reinvested
in maintaining infrastructure and equipment,
these were minimal during the first few years of
operation. In addition, there was no culture of
saving among the local associations, which also
limited reinvestment of profits in infrastructure
improvements.
During the following years, efforts were not only
necessary to increase the number of tourists but
also to raise awareness among local associations
regarding the importance of reinvesting part of
their profits to improve the facilities and services.
It is only in the last two years that the local
associations have understood the importance
of reinvesting in infrastructure and equipment
and have set aside part of their profits for that
purpose.
SERVICES
NGOs agreed to provide advice and training to
the local associations in order to improve the
quality of the services they provide. Training has
focused on aspects such as hospitality services,
the role of local guides and the provision of food.
Awareness has also been raised regarding the
importance of ongoing staff training in order
to remain competitive in the tourism market,
and local associations will need to reinvest part
of their profits for this purpose in the future.
However, improvements in the services provided
have already made it possible to establish
partnerships with public and private tourism
businesses.
28
MANAGEMENT
The RaD property has been shared among the
local associations and the participating NGOs
according to percentages established during the
annual meetings. However, the final objective is to
transfer control entirely to the local associations.
At present, NGOs control 5%, while the local
associations together control 90%.
PROMOTION
1. A PR campaign in the print and audiovisual
media, at the regional and national level.
2. Coordination with PromPer to provide
advisory services to local communities, and
promote the RNPS as a tourist destination.
PromPer has recognized the quality of the
services provided and has offered to include
the RNPS within a broader promotional
campaign featuring the Peruvian Northeast,
and entitled Iquitos and its surroundings as a
tourist destination.
FACTORS THAT ENABLED THE PROJECT TO
ACHIEVE THE INTENDED RESULTS
1. The presence of a field coordinator in
charge of implementing activities jointly
with the local associations, enabling the
latter to improve their services, promotion,
and market insertion, and facilitating
communication between the local associations
and the board of directors.
2. Increased commitment and awareness among
members of the local associations regarding
the projects importance. This enabled the
local associations to use their time more
effectively and assume greater responsibility
for their activities.
3. Training was adapted to local needs and
circumstances, thanks to the instructors skills
in modifying courses in the field and to the
good will of the local associations and their

interest in increasing their knowledge in
order to provide better services.
4. CURRENT CHALLENGES AND PRO

POSED SOLUTIONS
The main challenges in the medium term are the
following:
1. The administration of the Rumbo al Dorado
operation by local associations. Each association
will select two individuals who will be
trained by the coordinator. They will be
responsible for handling all operations,
from pre-sale (tourism information
services) to the production of financial
information. At the end of the training
process, the associations will select the
individual with the greatest capacity to
manage RaD. It is expected that this
will be achieved in 18 months. However,
it is possible that the local associations
might not obtain sufficient revenue from
tourism to provide training and assume the
management of RaD.
2. Greater participation by the communities in RaD
tourism activities. Previously, communities
benefited indirectly from the sale of
regional food products, tagua wood
handicrafts, and laundry and cooking
services. Currently, school students are
being trained to put on traditional dance
shows for tourists, providing additional
funding for schools to improve educational
facilities, contributing to the recovery of
traditional customs, educating children
about the benefits of ecotourism and
promoting their participation in that
activity in the future. Coordination
efforts are underway with a variety of local
organizations to support this initiative
and provide the schools with traditional
costumes. However, the local authorities
do not appear to be all that interested in
promoting improvements in education or in

reviving traditional customs.
3. Greater participation by local, regional and
national authorities in community tourism as an
economic alternative for communities and as a
mechanism for biodiversity conservation. After
the recent election of a new Municipal
Council, whose members appear to be
more committed to local development and
conservation, meetings were arranged with
several of the new local authorities and
with the regional president. Arrangements
have also been made for them to visit the
RaD so that they can promote it in the
region.
5. LESSONS LEARNED
FEASIBILITY FACTORS
From the outset, the project was based on the
following assumptions:
1. The country would remain politically,
economically, and socially stable.
2. National policy would continue to focus on
the development of sustainable tourism.
3. A good relationship with the communities
would be maintained.
4. No policies or concessions would
be promoted that might jeopardize
conservation and the ecotourism-oriented
management of the RNPS.
5. Community conflicts would remain at
manageable levels.
In general, these assumptions have held up,
making it possible to implement the project in an
efficient, participatory and environmentally viable
manner. In legal terms, this was a new experience
for the country; no clearly defined mechanism
for such an operation had been contemplated. In
this regard, RaD has gone through various stages
as needs changed over time and legal gaps were
filled. At present, since the local associations are
the majority shareholders, they have requested
29
Lessons Learned:
Raising awareness of ecotourism: The local population understands that
ecotourism is an additional economic opportunity that significantly contributes
to the conservation of natural resources through the effective management of
protected areas.
Conservation
of nature
Dissemination
of natural
history
Well being of local

cultures and an
improved quality of
life (not necessarily a
higher economic way
of life)
Sustainable
development for
present and future
generations.
Uso de semillas
Manejo de paiche
an operation permit and not a concession, as

was initially agreed upon. These changes have
been possible thanks to the capacity of the NGOs
that form part of the RaD to coordinate with the
central ofce of the appropriate authorities.
COMMITMENTS
The participation of various stakeholders as
members of RaD has allowed each group to
contribute its own experiences and expertise.
However, as in all group efforts, it took time,
patience, and goodwill to agree on common goals
with a view to obtaining the maximum benet
for all members. Fluid communication and the
active participation of all parties have been key
factors in achieving a good level of understanding
among the RaD members, the local communities,
and the relevant authorities. Communication
improved signicantly with the recruitment of
the coordinator (responsible for implementing
30
activities in the eld and acting as liaison between

local associations and the projects board of
directors).
SELF-SUFFICIENCY AND LONG-TERM
CONTINUITY
Initial support for the projects implementation
was of great importance, since it facilitated joint
work in the eld with local associations, on a
community tourism proposal that would benet
all the parties involved in the RaD. The initial
funding made it possible to build operational and
nancial capabilities among the local associations,
as well as to set up legal mechanisms to ll the
existing gaps in the legislation.
The nancial capacity of the local associations
will be strengthened by the increase in tourism
activities in the watershed. To support this effort,
promotional material such as brochures, press
releases, and a Web site have been produced,

and strategic alliances have been forged with the
private tourism sector for purposes of marketing
the product in international markets.
COMMUNICATION NEEDS AND
STRATEGIES
Initially, brochures were produced to publicize the
RaD operation. When it was felt that it had the
capacity to provide quality services, contacts were
made with the media to promote it more widely.
Print and audiovisual features have been produced
at the regional and national level, and the project
is now working with PromPer on a national
campaign featuring the Peruvian Northeast, which
includes the RNPS as a tourism destination.
Based on this experience, we would emphasize
the need to provide continuous training to ensure
that the available services remain competitive in
the tourism market. Alliances with private business
must also be maintained for the benefit of the
local associations. In addition, the local population
must be constantly reminded of the importance of

ecotourism as a complementary activity, stressing
conservation and the sustainable management of
natural resources within a protected area. Finally, we
recommend using tools to assess the contribution
of ecotourism to conservation, the management of
protected areas, the role of local associations (RaD),
and the benefits that should accrue to the local
population, based on an appropriate costs structure.
6. REFERENCES
National Institute of Natural Resources
INRENA. 2000. Plan Maestro para la conservacin
de la diversidad biolgica y el desarrollo sostenible de
la Reserva Nacional Pacaya Samiria y su zona de
amortiguamiento. Lima.
Rodrguez, F., M. Rodrguez, & Vsquez. 1995.
Realidad y perspectivas: La Reserva Nacional Pacaya
Samiria. Fundacin Peruana para la Conservacin de la
Naturaleza, USAID and The Nature Conservancy
(TNC). Lima.
31
ECOTOURISM, INDIGENOUS COMMUNITIES AND

ENVIRONMENTAL SERVICES: A STUDY OF TWO
CASES IN THE ECUADORIAN AMAZON:
THE ACHUAR AND THE HUAORANI
Arnaldo Rodrguez, Green Consulting

STUDY
SUMMARY
This paper presents the cases of the Achuar and the
Huaorani nations, two indigenous communities in
Ecuador that have used ecotourism as a mechanism
to obtain the funds needed to cover their present
needs, as an outcome of their insertion into the
market economy. The Huaorani case reects the
experience of community-based tourism in an
alliance between four Huaorani communities settled
along the banks of the Shiripuno River and a private
tour operator (Tropic Journeys in Nature), the builder
and owner of the Huao Lodge. Construction of
the infrastructure took several years and included
efforts to establish suitable conditions for the
ecotourism operation, organize the communities
involved, create a legal framework, train personnel
and promote the area as a tourist destination. All the
studies and project processes were carried out in a
participatory manner with the Huaorani communities.
The summary of the Achuar case describes the
experience of one community in establishing a lodge
with the tourism rm Canodros S.A., as a strategy
for conservation and development. The lodge has
space for 38 guests, has received several mentions
and international awards, and has adopted a strict
social code to minimize the negative impacts of
tourism. This alliance between an indigenous
organization and a private company has produced
signicant outcomes through the implementation
of an economic activity as a mechanism for sound
natural resource management and for the nancial
sustainability of the organization. Although the
nancial contributions to the families involved in
tourism are low in absolute terms, the families
themselves consider them as major benets to their
economy. These benets translate into incentives for
conservation, demonstrating that tourism is a valid
compensation mechanism for environmental services
for communities in the Amazon region.
Most of the indigenous groups in the Ecuadorian

Amazon possess large territories with high
biodiversity, capable of providing different
environmental services. However, traditional
economies, lack of technical capacity in the
indigenous organizations and internal politics
make the effective implementation of large-scale
environmental service compensation programs
difcult. Community-based tourism, despite
its operational limitations (e.g. accessibility and
protability, etc.), could provide a compensation
mechanism for environmental services.
Two case studies illustrate this point: one in the
Achuar nation and the other in the Huaorani
nation. The rst population inhabits a territory
of 787,000 hectares in the southern Amazon
region of Ecuador, where potential threats include
oil exploitation and cattle-ranching. The second
group has a territory of 1,000,000 hectares in
the central Amazon region of Ecuador, where the
main threats include logging and oil exploitation.
Agnes Kiss (Kiss 2004) argues that the
contribution of community-based tourism to the
development of local economies and conservation
is constrained by factors such as the small number
of people involved, low earnings, questionable
benets to biodiversity, limited commercial
success as well as the competitive and specialized
nature of tourism. She concludes that such
initiatives have resulted in small contributions
that have not signicantly improved the quality of
life of the host communities (which continue to
33
be dependent on external support for long periods

or, in many cases, for an indefinite period), and
have not achieved conservation objectives.
Kiss conclusions are perfectly valid from a
market economy point of view. Given the lack of
connectivity between Amazonian communities for
marketing other products (such as cacao, peanuts
or annatto), economic opportunities for human
groups in the Amazon are limited. Therefore,
what is the alternative? And if tourism is part of
the solution, what is its impact on conservation
and poverty?
Before attempting to respond to these questions
an important concept must be introduced: that of
the Gift Economy. This economy is based on the
deferred exchange of goods. The essence of the
gift economy (which maintains a flow of goods
between giver and receiver), is the obligation to
reciprocate (Gauss 1990, Smith & Wray 1999).
Gift economy
34
By creating a perpetual cycle of exchange, the gift

economy unites all members of the community.
There is a dichotomy between gift and market
economies, in the sense that a market economy
can undermine the foundations of a community
structure. Some of the differences between these
economies are shown in the table below:
In a gift economy, quality of life is not measured
in terms of money or the accumulation of tangible
goods. Access to education (community factor),
family (individual factor), health (community
factor) and access to natural resources
(community factor) are the factors associated
with a good life by the communities. However, the
Amazon communities are becoming increasingly
integrated into the market economy, which creates
new needs including school supplies for children,
western clothing, as well as flights and medicines
in emergencies.
Market economy
Non-monetary
Monetary
Favors social organization
Favors individualism
Economy for the common good
Economy for individual good
Strengthens social cohesion
Reduces social cohesion
Unlimited access to resources
Limited access to resources
Patrimony is a common good
Patrimony is exploited for individual

benefit
Promotes dispersed settlements
Promotes settlement centers
Has mechanisms to avoid wealth

accumulation
Promotes the accumulation of wealth
HUAORANI CASE
The Huaorani case presents the experience of
community-based tourism through an alliance
between four Huaorani communities, involving
22 families settled along the Shiripuno River
and a private tour operator (Tropic Journeys in
Nature), the builder and owner of the Huao
Lodge. The lodge is an ecotourism product with a
gender-based approach that operates in Huaorani
territory. Infrastructure construction took several
years and included efforts to establish conditions
for the ecotourism operation, organize the
communities involved, create a legal framework,
train personnel and promote the area as a tourist
destination. All the studies and project processes
were carried out in a participatory manner with
the Huaorani communities. The implementation
process received support from the CAIMAN
Project (Conservation in Managed Indigenous
Areas), an initiative of the United States Agency
for International Development (USAID).
Although the average monthly income in a
Huaorani family is US $ 31.35, 100% of the
Huaorani families consider that their quality
of life is very good. It should be noted that in
Ecuador the minimum living wage in the private
sector is US$ 170/month1, or 542% more than
the average monthly income in the communities
studied. However, monetary income should
not be regarded as an indicator of poverty or
a limiting factor for a good life. Aspects such
as self-reliance, small populations living in
extensive territories, access to housing and
non-traditional education and a gift economy
prevent the Huaorani communities from being
characterized as marginal. The main sources of
economic income for the Huaorani are tourism,
handicraft sales and temporary jobs in public
institutions. These activities are classified as
occasional and the Huaorani do not consider

them as essential for a good life.
For the Huaorani, the five determinant factors
for a good life are (in order of importance): 1)
education for children, 2) time spent with the
family, 3) health, 4) being surrounded by nature,
having a forest, and 5) having food. If these
indicators constitute good living conditions
among the Huaorani communities, what need
is there to introduce a market economy model
(community-based tourism) into the Huaorani
system? The answer was provided mainly by the
women. One woman stated that in reality, we
do not need money for ourselves because we are
content with our lives, but we are concerned
about the health and education of our children.
Another woman mentioned that the children die
here because there are no medicines or nurses and
we dont have money for emergencies.
What the study shows is that even though tourism
generates small contributionsas Kiss well argues,
these small contributions can be very significant
for Amazon communities that depend on gift
economies. Although US$ 30 per month may
appear to be an insignificant sum for a family from
a market economy point of view, for a Huaorani
family it may represent a 100% increase in income.
The Huaorani depend on hunting for their
subsistence and are capable of recognizing
commonly hunted species, those with declining
populations and those that are important for
tourism. The Huaorani also recognize that certain
species must be conserved. The main reason for
this belief among the communities is that these
species attract tourists (placing a greater value on
some species as tourist attractions, than for their
hunting value) and because their conservation
is important for future generations. In hunting
practices, there is a direct relationship between
tourism and the conservation of flagship species.
For example, tapirs are rarely hunted and their
Minimum living wage in private business as of March 2007 according to the Central Bank of Ecuador. (www.bce.fin.ec).
35
they have nocturnal habits they do not deserve

(in the opinion of the Huaorani) to be conserved
since tourists do not see them and therefore they
are not considered attractions or flagship species.
populations do not appear to be declining.

However, the Huaorani believe they deserve to
be conserved as a tourist attraction. Deer and
trumpeters (birds) are often hunted and because
Hunting and conservation relationships

-frequency of responses-
Collared peccary
10
Trumpeter
Spixs guan
7
7
7
Salvins curassow
6
6
Paca
White-throated toucan
Tinamous
(Tinamidae)
10
7
7
Woolly monkey
6
1
6
2
5
Whitetail deer
Spectacled caiman
Hawks/eagles (Accipitridae)
Most hunted animals
Animals that must be protected

Squirrel
River turtle
Scarlet macaw
Mealy parrot
Howler monkey
White-fronted capuchin
Coati
Tapir
Species with declining populations

2
2
Saki
monkey
1
1
1
1
1
1
10
1
1
1
1
1
10
Common piping guan
1
1
024681012
36
ACHUAR CASE
The Achuar inhabit a territory of 787,000
hectares of well-preserved wet tropical forest
divided into nine Associations: five in Morona
Santiago (Pumpuentsa, Wampuik, Saapapentsa,
Wichim and Tsunkintsa) and four in Pastaza
(Churuya, Makusar; Asociacin de Centros Achuar
de Pastaza-ACAP and Asociacin Achuar de
Copataza-AAC). These associations include 64
population centers or communities. The current
Achuar population is approximately 6,000. The
Achuar are essentially itinerant hunters and
subsistence farmers and they are relatively selfsufficient. However, their rapid integration into
the national economy, their external cultural
requirements (education, dress, etc.) and urgent
needs (health, medical emergencies), have created
a need for financial resources.
In 1995, a lodge was established by the Achuar
community and the Canodros S.A. tourism
company as a strategy for conservation and
development. The lodge has capacity for 38 guests,
has received several international mentions and
awards and is equipped with appropriate systems
for minimizing environmental impacts (solar
energy, sewage treatment, low emission motors). A
strict social code has been established to minimize
the negative impacts of tourism, including a ban
on taking photographs in the communities, giving
money, or making visits without the consent of
the Achuar. So far, this alliance between the
indigenous organization and a private firm has
produced significant outcomes, resulting from
the implementation of an economic activity
as a mechanism for sound natural resource
management and for the financial sustainability of
the organization.
The contributions provided by the private firm
(Canodros SA) to the Achuar communities have
become incentives for conserving their territory,
demonstrating the importance of tourism as
a compensation mechanism for environmental
services, in the face of threats from timber and
oil exploitation that are common in the area. A

transfer plan is currently being implemented with
a view to transferring all equipment and technical
capacities entirely to the Achuar communities.
MANAGEMENT MODEL
The management model used prior to the start of
the transfer plan involved the participation of two
actors: the Achuar communities, represented by
the grassroots organization NAE (Nacionalidad
Achuar del Ecuador), and Canodros S.A.
The Nacionalidad Achuar del Ecuador (NAE) is
an indigenous grassroots organization. Its main
objectives include a) defending and valuing the
culture, language and customs of the Achuar
people of Ecuador, b) promoting and advising
their internal associations and consolidating
all the centers located within the Ecuadorian
Amazon, defending territorial integrity, c)
planning and coordinating the execution of
social development projects and programs with
governmental, private, national and international
institutions.
Canodros S.A. is a private company engaged
in the development of sustainable tourism in
areas of natural and cultural interest. At present
it has operations in the Galapagos Archipelago
and in the Ecuadorian Amazon (the latter
through the project with the Achuar). This
tourism firm has provided capital for building
the lodge, technical services (architects,
consultants), management operations and the
marketing of the destination. Under this model,
the Achuar community contributed human
resources (personnel for different areas of the
lodgeguides, drivers, waiters) and cultural
resources through travelers interacting with
the communities. At the beginning of the
process, the community contributed materials
and labor to build the lodge. The model has
been functioning for more than 10 years and
has reached the transfer stage, which should be
completed by the beginning of 2008.
37
COMPENSATION FOR ENVIRONMENTAL

SERVICES
The experience in these communities shows
the importance of tourism as a compensation
mechanism for environmental services. These
conservation efforts have prospered thanks to
the contributions (incentives) that the private
firm provides to NAE and the communities
involved. Between 1996 and 2005 the operation
managed by Canodros has generated US$
1,225,724 in direct contributions to the local
communities and to the NAE. This economic
contribution has focused on rental paid for the
lodge, payment of entrance fees for visits to the
Achuar communities, purchases of local products
(food), payments to Achuar personnel who work
in the lodge, flights to and from the community,
donations and others. Details of the amounts
generated by the operation are presented, by
category, in the following table.
TRANSFER PLAN
The agreements made between the NAE and
the tourism firm, Canodros, stipulate that full
responsibility for the administration of the
tourism operation will be transferred to the
Achuar organization at the beginning of 2008.
Aware of the challenges that managing a
complex tourism operation represents for
the Achuar organization, a transfer plan was
devised to facilitate the successful handover
of the tourism facility to the Achuar people.
In general terms, the transfer aims to give the
Achuar a legally viable financial enterprise, with
equipment in good condition. It also plans to
implement visitor monitoring systems, zoning
plans and the dissemination of the entire
process with the Achuar communities involved
and other actors.
Period
1996-2004
Period 2005
$293,856
$41,000
$9,016
$1,322
Sale of local products
$43,240
$3,563
Handicrafts
$16,200
$349
Services Provided
$116,400
$2,133
Achuar personnel
$456,300
$69,426
Leasing
Visitor entrance fees to communities
Flights for communities
$46,800
Miscellaneous
$18,000
Entrance fees USD 10.00/pax
$ 83,160
$10,260
Donations to communities
$2,753
Transfer Transport and Mobilization
$3,331
Transfer Lodging and Food
$7,561
Transfer Professional Services
$724
Transfer Training
Transfer Miscellaneous
SUB-TOTALS
$1,082,972
TOTAL 1996-2005 (Cut-off date 31

October 2005)
$ 1,225,794
Contributions generated by Canodros for the NAE and Achuar communities.

Source: Canodros 2006
38
$142,822
1. Despite its low profitability, tourism can
be an effective compensation mechanism
for environmental services. The generation
of contributions and benefits for the host
communities in the Amazon region provides
incentives for natural and cultural resource
conservation and prevents the development
of high-impact extractive activities such as
logging and oil exploitation.
2. The efficacy of this model is also due to the
lack of other alternatives for indigenous
communities inhabiting large, geographically
isolated territories with high biodiversity.
3. Experience has shown that, except for highly
extractive, destructive or easily accessible
activities, economic opportunities are
very limited in Amazon communities, and
therefore community-based ecotourism is one
of the most commonly used options.
4. Although minimal in quantitative terms,
the financial contributions received by
families involved in tourism are considered
as major economic benefits by the families
themselves. These benefits translate into
incentives for conservation, confirming that
tourism is a valid compensation mechanism
for environmental services in Amazon
communities.
5. Despite opportunities for private firms to
participate in the model of communitybased ecotourism management, companies
seldom do so, due to the lack of incentives
for investing in the Amazon region. This
includes lack of planning to ensure the
financial sustainability of business ventures,
and uncertainty regarding the efficiency of
Amazon indigenous people associations as
part of an economic model.
6. The communities within the lodges zone of

influence are creating new businesses that
are integrated into the ecotourism initiative,
generating new income for the communities
and having a multiplier effect on resource
conservation and economic development.

PROPOSED SOLUTIONS
A potential model that offers an opportunity for
the efficient development of community-based
ecotourism could be an association between the
private sector, indigenous groups and NGOs.
In this association, the three stakeholders would
assume different roles:
Private firms would contribute to the
development of the product including 1) capital
investment, 2) operation of the destination, 3)
product and service quality control, 4) standards
of quality, 5) staff training, especially in practical
aspects such as interpretive guide services
and quality customer service, and 6) sales and
marketing of the product.
The community would contribute 1) natural
resources, including the basic attractions of the
tourism system, 2) territory for the location of
the operation, 3) human resources, either as
service providers or under permanent contract, 4)
handicrafts and foods made with locally generated
products, and 5) during the implementation
phases, the community can provide raw materials
and labor for the construction of infrastructure.
NGOs would contribute 1) assistance in reducing
tensions between communities and private
firms stemming from the opposite functions of
their economies (gift and market), 2) capital
investments (loans or donations), since some
NGOs have a greater financial capacity than the
companies or they are able to raise the necessary
funds, 3) implementation of environmental
monitoring, zoning and visitor management
39
methodologies, and 4) organization and creation

of micro-enterprises that operate within the
business producing complementary goods (food
products, timber, handicrafts, etc.).
40
of Exchange in Archaic Societies, W.W. Norton,

New York.
5. REFERENCES
Kiss, A. 2004. Is community-based ecotourism

a good use of biodiversity conservation funds?
Trends in Ecology and Evolution Vol.19 No.5.
CANODROS/NAE/Fundacin Pachamama.
2007. Transfer Plan Kapawi, Quito.
Chase Smith, R. and Wray, N. (Eds.) 1996.
Amazona: Economa Indgena y Mercado,
COICA-OXFAM America, Quito, Ecuador.
Gauss, M. 1990. The Gift, Forms and Functions
Rodrguez, A. 2004. Establecimiento de

Condiciones para una Operacin Ecoturstica
de Base Comunitaria en la Comunidad
Huaorani de Quehueri-ono, CAIMAN Project,
Implementation Unit of the Northern Amazon
Development Program (CONFENIAE-IDBUDENOR), Quito, Ecuador.
MUNICIPAL REGIONAL PARKS: A MODEL OF

SUSTAINABLE COMMUNITY DEVELOPMENT
IMPLEMENTED IN THE MULTIPLE-USES RESERVE
OF THE LAKE ATITLN WATERSHED, IN SOLOL,
GUATEMALA.
Marlon J. Caldern-Barrios,
Asociacin Vivamos Mejor

STUDY
SUMMARY
This study describes the activities, achievements
and challenges encountered in the design and
implementation of a system of Municipal Regional
Parks (MRPs) in the watershed of Lake Atitln, in
Guatemala. The basic idea is that the Municipal
Regional Parks system should evolve as a joint
initiative and to achieve this, special characteristics
have been identied in each of these areas for
developing ecotourism products that complement
each other. It is hoped that over the next ve
years the number of Municipal Regional Parks
will be doubled to 10. The management process
in these areas includes the following steps: a)
local-level declaration of the municipal forestlands
as a conservation area, b), ecological and social
characterization, c) preparation of a management
plan, d) creation of the Co-Management Council
(CMC), e) design and implementation of the
ecotourism project, e) marketing plan and f)
registration of the area in the Forestry Incentives
Program PINFOR of the National Forestry Institute
(INAB). The most successful measure, in terms of
ensuring the sustainability of the areas managed
by regional governments, has been the support
provided to the municipalities in administering
forestry incentives to enable them to recruit staff
for the management of the areas. These incentives
have opened up a window of time for consolidating
the ecotourism programs, which are envisaged
as a way to guarantee the sustainability of the
Systems conservation. In terms of governance,
an important result has been the establishment
of Co-Management Councils comprising local
government representatives and members of civil
society, which are responsible for implementing
policies linked to the conservation and valuation of
natural and cultural resources.
Located in the western highlands of Guatemala,

the watershed of Lake Atitln has been studied
by numerous geologists since the end of the
nineteenth century. According to scientic
theory, an ultra-plinian volcanic explosion
occurred approximately 85,000 years ago and
was so violent that it probably wiped out all life
forms within a radius of hundreds of kilometers.
The explosion of Chocoyos, as it is known
locally, expelled around 150 cubic kilometers of
pulverized magma or ash; even today, traces of this
may be found from southern Mexico to Panama.
After the magma chamber had been emptied,
the roof of the great cavern collapsed, leaving
an enormous circular cavity of approximately 18
kilometers in diameter which, with the passage
of time, was gradually lled by the rivers Quiskab
and Panajachel, thereby forming Lake Atitln.
Subsequently, three new volcanoes emerged
from the ancient crater: San Pedro, Tolimn and
Atitln.
The volcanoes of the Atitln watershed now
contain much of the diversity that is unique to
Guatemala. Here we nd dramatic landscapes,
water, forests and volcanic peaks; xeric ora (dry
regions) and leafy forests; minute orchids and
century-old oak trees; threatened mammals such
as the puma and the shrew; endangered birds
such as the horned guan, the quetzal (Guatemalas
national symbol) and humming birds, as well as
reptiles and amphibians unique to these lands.
41
In socio-cultural terms, Atitln is a multicultural

mix, with sacred pre-Hispanic sites, indigenous
villages and tourism centers offering modern
hotels. It is an area of contrasts - from people living
in conditions of extreme poverty to others with
luxury chalets. Some lands are highly productive,
producing crops as varied as corn, beans, coffee,
tea, quinoa and macadamia while other lands are
completely exhausted. The regions enormous
biological diversity, which is of global and national
importance, is now under major pressure due to the
economic situation, population growth and cultural
changes (Dix et al. 2003).
Efforts to conserve the watershed of Lake Atitln
began in 1955 when the area was declared a
National Park. In 1997, after several decades
of neglect caused in part by the internal armed
conflict, it was re-classified as a Multiple-Uses
Protected Area and its management was delegated
to the National Council for Protected Areas
(CONAP). This institution established itself in
the area and adopted a management approach
characterized by close operational ties with the
municipal authorities and a tendency to delegate
the administration of the protected area to the
local government. In this context, the Parks in
Peril (PiP) project was launched in 2000, with
the aim of promoting the conservation of the
regions biodiversity by strengthening municipal,
community and private efforts to manage natural
resources.
The work of the NGO Vivamos Mejor as a partner
of The Nature Conservancy in Atitln has consisted
of strengthening local capacities towards building
a system of Municipal Regional Parks, where
local governments assume responsibility for the
sustainable management of natural resources in
their municipalities.
The implementation of the Municipal Regional
Parks System has been based on a methodology
applied with slight variations in five municipalities
of the Atitln Watershed: San Pedro la Laguna,
42
San Marcos la Laguna, Santa Clara la Laguna, San

Juan la Laguna and San Lucas Tolimn, in the
department of Solol.
This methodology relies on the efforts and
interest of local authorities in planning land use in
their municipalities. To illustrate this process, the
case of the municipality of San Pedro the Laguna
is described below.
1. Municipal-level declaration of municipal
forestlands as a conservation area.
2. Ecological and social characterization.
3. Management Plan (natural resources, public
use and local culture).
4. Municipal policy on Conservation of Natural
and Cultural Resources and their use for
Ecotourism purposes.
5. Creation of the Co-Management Council
(Consejo Chajinel).
6. Design and implementation of the Discover
San Pedro ecotourism project

a. Volcn San Pedro Ecological Park.

b. Tzunun Ya Cultural Community Center.

c. Thematic Community Tours:
i. Organic Coffee.
ii. Traditional Healthcare
iii. Maya Spirituality
7. Marketing plan
8. Process to register the municipality in the
Forestry Incentives Program (PINFOR) of
the National Forestry Institute (INAB).
This process has been under way for five years
now, and has received support from numerous
national and international organizations during
its implementation. The forestry incentive has
been adjudicated for the next 10 years. The
ecotourism project is beginning to operate in
a more integrated way and fits in well with the
municipalitys local tourism dynamic. The local
economy revolves around coffee production and
tourism. The Discover San Pedro initiative is
the municipalitys main tourism attraction and
promotes the development of community tourism
services.
Developing New Tours
3. PRELIMINARY
RESULTS
The preliminary results of the
initiative have been satisfactory,
given the social, economic and
environmental characteristics of
the Lake Atitln watershed. The
system of Municipal Regional
Parks is the most efcient way
of managing natural resources at
the departmental level. In the
context of the land-use planning
efforts currently under way, there
is a proposal to expand the MRP
system in the department.
The basic idea is to promote the System of

Municipal Regional Parks in the watershed
of Lake Atitln in an integrated way and, to
accomplish this objective, special features have
been identied in each of the areas with a view to
developing complementary ecotourism products.
The plan is to double the number of Municipal
Regional Parks to 10 over the next ve years, and
to accomplish this it will be necessary to create a
Community Tourism Network in Atitln to link
the areas together. Vivamos Mejor is currently
working to establish a tourism board to support
marketing efforts at regional and national level.
The main obstacles to making this project
operational, both at the municipal and intermunicipal levels, are of a political character, with
competition at the municipal and departmental
levels to gain the leadership of the political parties
for re-election purposes or for nomination to
other public positions. In some municipalities
there are ancestral conicts over undened
territorial boundaries. It is also necessary to
strengthen CONAP at the regional level and
improve coordination at the municipal level to
ensure effective and efcient environmental
management.
With regard to the valuation of environmental

services it is considered very important to take
advantage of the forestry incentives program,
PINFOR, thereby allowing a reasonable period
of time to consolidate the ecotourism programs,
which are envisaged as the means to sustain the
conservation of the MRP system.
In economic terms, the municipal coffers have
beneted from the increased revenue generated
from the sale of services, thereby changing
perceptions of the value of natural resources.
In some cases, associations have been formed
to manage solid wastes, prompted by the
development of tourism in the municipalities.
With regard to governance, one important result
has been the establishment of Co-Management
Councils made up of local government and civil
society representatives, responsible for developing
policies linked to the conservation and valuation
of natural and cultural resources.
One of the key factors in the successful
implementation of the System of Municipal
Regional Parks has been the development of
models or pilot projects, which have set an
example for other projects to follow.
43
VOLCN SAN PEDRO

ECOLOGICAL PARK
TZUNUN YA CULTURAL
COMMUNITY CENTER
4. PRESENT CHALLENGES AND

PROPOSED SOLUTIONS
Lake Atitln and its surrounding communities
constitute a major tourism attraction because
of their natural beauty, landscape and culture.
However, despite being second most visited
tourism site in Guatemala, the area is also the
fourth poorest department in the country. This
means that the benefits of tourism are not
reaching the communities that live in there.
Tourism has developed in a spontaneous,
empirical and somewhat piecemeal manner,
due to a lack of planning. Unplanned land use
in the Atitln watershed area has prevented
the territories (municipalities) involved from
identifying their tourism specificities in order
to complement each other. As a result, the
type of tourism destination that has emerged
44
in the watershed is not based on an overall

vision of territory, but rather on facilities and
services that operate in isolation and under
specific interests. The main challenge lies in
consolidating local tourism systems, integrating
these into a Tourism Development Plan for
the Atitln Watershed, and developing a
Community Tourism Network to ensure that
tourism achieves the desired effect of helping
to combat poverty in the department of Solol.
In the international sphere there is much
talk about responsible tourism and in Latin
America there are interesting experiences
- for example, in southern Mexico and Costa
Rica of Community Tourism Networks that
work successfully. In Atitln a Community
Tourism Network is currently being developed.
However, ecotourism projects must achieve
minimum standards of quality in order to
establish a homogeneous and complementary
system.
5. LESSONS LEARNED
The project required the participation of a
multidisciplinary team for its implementation.
The weakest and most vulnerable institutional
link in the process was community organization,
due to its instability and the political and social
dynamics. In this context, the Co-Management
Councils have played a crucial role in the
development of the Municipal Regional Parks.
Given the areas characteristics, ecotourism is
envisaged as the most effective way to ensure
the sustainability of conservation efforts in the
Municipal Regional Parks. This development
process requires the participation of civil society
in coordination with the local authorities.
The community groups that showed greatest
resistance to the development of the Municipal
Regional Parks, in relation to ecotourism, were
those who benefited directly from these areas
without being subject to any regulation on the
part of the local authorities. The project required
them to make some changes in the way they carry
out their activities, especially some groups of
guides who refused to receive training courses to
improve their performance. In many cases these
individuals lacked even the most basic level of

education required to receive training.
The most successful measure, in terms of
sustainability, has been the support provided to
the municipalities in administering the forestry
incentives, enabling them to assume responsibility
for hiring the personnel to manage the protected
areas. However, with changes in municipal
authorities it will be necessary to accompany the
transition period and carry out a social audit to
ensure the transparent use of investment funds.
In terms of communication, it was often necessary
to clarify the projects objectives during the
implementation phase, since political opponents
tended to criticize and distort the information,
thereby creating mistrust among the population.
In some cases the media was used to respond
to peoples concerns, including local radio or
television, and on other occasions traditional town
meetings (cabildos abiertos) were held.
6. REFERENCES
Dix, M., Medinilla, O. and E. Castellanos. 2003.
Diagnstico Ecolgico y Social en la Cuenca de
Atitln. Universidad del Valle, Guatemala & The
Nature Conservancy, Guatemala.
45
THREE CASE STUDIES OF COMMUNITY-BASED

ECOTOURISM: AMISTAD-BOCAS DEL TORO,
COSTA RICA; ATITLAN VOLCANOES, GUATEMALA;
AND PACAYA-SAMIRIA NATIONAL RESERVE, PERU
Holly M. Jones, EplerWood International
As a part of the process of identifying lessons

learned from the PiP program, the consulting rm
EplerWood International was retained to produce
the following case studies about three of the
program sites: Amistad-Bocas del Toro, Costa
Rica; Atitlan Volcanoes, Guatemala; and PacayaSamiria National Reserve, Peru. Based on telephone
interviews with project managers, the cases
focused on major accomplishments, programmatic
successes and lessons learned.
A. Amistad-Bocas del Toro

Country:
Costa Rica & Panama
Project Cycle: October 2002- 2007

NGO
Partner:
Government
Agency:
Interviewee:
Manager
Costa Rica: National

Institute for Biodiversity (INBio)
Panama: Fundacin para
el Desarrollo Integral del
Corregimiento (FUNDICCEP)
Asociacin ANAI
Fundacin Cuencas de Limn
(FCL)
Costa Rica: Sistema Nacional de

reas Protegidas (SINAC)
Panama: Autoridad Nacional del
Ambiente (ANAM)
Felipe Carazo, La Amistad Project
Site Description
Located in the south-central region of Costa
Rica and the north-western sector of Panama,
the binational site of Amistad-Bocas del Toro
is one of the regions largest expanses of virgin
forest. This region is highly regarded for its unique
biodiversity, and in 1982 the United Nations
Educational, Scientic, and Cultural Organization
(UNESCO) declared the area as the Amistad
International Biosphere Reserve. The Reserve
encompasses approximately 1.24 million acres
with about 584 thousand hectares in Costa Rica
and 655 thousand hectares in Panama. Just one
year after declaring the region a biosphere reserve,
in 1983 UNESCO recognized Amistad as a new
World Heritage Site.
The PiP project area is located primarily within
the highland Talamanca Montane ecoregion,
and some buffer zone areas that extend into the
Isthmian-Atlantic and Isthmian Pacic Moist
Forest ecoregions. The Amistad mountain chain
includes the highest peaks in both countries: the
Cerro Chirrip in Costa Rica at 3,819 meters
above sea level, and Volcn Bar in Panama at
3,475 meters. The borders of the Parks in Peril
Amistad-Bocas del Toro site are within the
borders of the Amistad Biosphere Reserve,
which includes the La Amistad International
Park (Parque Internacional La Amistad, PILA),
and several other protected areas and indigenous
reserves in both Costa Rica and Panama. The PiP
project concentrated mainly on the continental
areas of the Amistad Biosphere Reserve, focusing
47
on the mitigation of threats affecting conservation

targets in the mid- to high-elevation areas (above
1000 meters of altitude). The approach was to
complement with the PROARCA project, which
aimed to mitigate threats affecting conservation
targets located in the lowlands (below 1000
meters) and marine and coastal areas.
Overview
The Amistad site is uniquely characterized by the
diverse components that comprise the site. Costa
Rica and Panama both encompass two geographic
sectors, the Pacific and the Caribbean, as well
as distinct campesino and indigenous groups.
As demonstrated here, many of the tourism
developments in the Amistad site hinge on
learning from past experiences to guide present
programs and plan those of the future. This is
well illustrated by the execution of multi-region
carrying capacity assessments. The PiP Amistad
team has also taken the lead in promoting
community based tourism through their capacity
building and educational programs. Through their
work in Amistad, they have helped community
based groups by providing structural assistance to
form locally based networks. A comprehensive
interview with Amistad PiP Project Manager,
Felipe Carazo, shed a great deal of light on these
topics.
Key Accomplishments
Site Assessment
The Amistad national park system, due to its
wide-ranging geographical location, presents
a variety of unique ecosystems and natural
resources that are very popular with tourists;
3

4
48
consequently the number of visitors to the

park has been increasing significantly in recent
years. Since the park system aims to balance the
influx of tourist traffic with the sensitivity of
the natural environment, a program to measure
the effective carrying capacities of the parks was
undertaken. Uncontrolled tourism could lead to
the degradation of the parks, resulting in the loss
of the biodiversity and cultural aspects of these
tourist attractions.
The threat of uncontrolled tourism was already
evident in Chirripo National Park, as well as in
Amistad International Park, known in Spanish as
PILA (Parque Internacional de La Amistad).
The carrying capacity assessments followed a
methodology developed by Miguel Cifuentes, of
WWF-CATIE3, which incorporates Limits of
Acceptable Change, a framework for establishing
appropriate resource and social conditions in
recreation settings4. While the assessment
in PILA followed a preventive approach and
surveyed five regional sites, the carrying capacity
assessment for Chirrip followed a corrective
approach and assessed eight sites. The area was
already heavily visited, and one of the objectives of
the study was to offset the negative impact already
being felt.
The conclusions of these site assessments
identified the major limiting factors of each
regional site. They also produced targeted
recommendations on how to better manage the
impact of the tourists, such as encouraging specific
types of low-impact tourism, educating the
tourists on proper environmental behavior, and
improving tourist services overall.
WWF-CATIE: World Wildlife Fund in collaboration with the Agricultural Center of Tropical Investigation and Teaching
(CATIE)
LAC was developed in response to the need of managers for a means of coping with increasing demands on recreational areas. LAC
also represents a reformulation of the recreational carrying capacity concept, with the primary emphasis now on the conditions
desired in the area rather than on how much use an area can tolerate.
Site Development in Yorkin

One of the central goals of the Parks in
Peril Project was to establish processes and
mechanisms to support the conservation of
natural resources in national parks and their
buffer zones. Within this context, the project
sought to design programs that would support
sustainable activities that could generate alternate
sources of funding for the communities located
within the park system.
By banding together, the communities within

the park systems have the opportunity to reap
the benefits in terms of conservation, economic
development and education. With more access
to information and technical assistance, the
communities are able to participate in the
developmental process. The PiP Amistad team
has facilitated the organization of such networks,
while also developing educational programs to
educate the members.
When destructive agricultural and forestry

practices were threatening the livelihood of the
Rio Yorkin basin, the PiP Amistad team began
to analyze the possibility of creating community
based tourism as an alternative to the nonsustainable practices. A feasibility assessment
was conducted by collecting information from
central powers, notably the Ministry of Planning,
and undertaking field investigations. The team
conducted interviews with local government
officials, community managers, and local business
owners to focus on finding community-based
solutions.
In the Pacific sector of Amistad, local

communities organized themselves under the
Quercus Network, or Red Quercus in Spanish.
This organization is dedicated to capacity building,
environmental education, sustainable activity and
tourism, and planning within protected areas.
These goals motivate them to strive for a higher
standard of living in their communities. The
training program developed by the PiP project
and INBio (National Biodiversity Institute)
focuses on designing custom-made educational
courses for the network members that emphasize
the resources in Amistad such as mammals, birds,
trees, fungi and trail interpretation.
This study resulted in the presentation of a

follow up plan, Fomento de Turismo Ecolgico
y Cultural en la Cuenca del Ro Yorkn or
Strengthening of Ecotourism and Cultural
Tourism in the Rio Yorkin Basin. This plan
takes a fundamentals-first approach. Instead
of focusing on the development of tourist
services or infrastructure, the plan is dedicated to
comprehensive community capacity building and
strengthening the basic public services such as
clean water and waste management. The ultimate
goal of this project is to increase the local capacity
to plan their community development, coordinate
with other institutions, and communicate
effectively.
Local Empowerment
Ecotourism has been deemed an appealing
development alternative by indigenous
communities in the Amistad region because it
promotes the regions natural resources while
steering clear of exploitation and destruction.
On the Caribbean side of the park, 17 community

groups from the Talamanca Indigenous Reserve
joined together to form the Indigenous Tourism
Network, also known as the Red Indgena de
Turismo in Spanish. Since their recent formation,
they have developed their own decision making
mechanisms, rules, and procedures, and are reaching
an agreement on the type of tourism activities to
promote. They launched a strategy with a sustainable
approach to building local capacity and developing
and promoting their tourism product.
The training program designed by the PiP team,
in collaboration with the National Learning
Institute (INA), focuses on the variety of
activities related to the tourism industry such as
foreign language acquisition, finance management,
and field interpretation.
Through education and active empowerment, the
community networks are becoming more invested
49
in the conservation of their diverse territories

and cultures. The PiP Amistad team is working
toward replicating the success of the two networks
by encouraging sustainable tourism activities at
other sites throughout Costa Rica and Panamas
Amistad forest. Positive results from feasibility
studies at the new sites have encouraged the team
to further explore both the ecological and social
carrying capacity of potential sites.
local capacity building, environmental education,

and sustainable activity and tourism. Working
together under common goals provides strong
encouragement to become invested in the
conservation of the diverse lands and cultures.
Lessons Learned
Project Cycle: October 1, 2001- December 31,

2006
Diversification
Ecotourism was viewed by the project as one
suitable alternative for income generation. As
reported by Felipe Carazo, community based
tourism in Amistad should be addressed as one
of many sources of income, not as the economic
salvation of the area. Other sustainable economic
alternatives such as organic production, payment
of environmental services, and research initiatives
are also needed and should be promoted.
Community based tourism should be approached
as an activity that can help diversify the economic
dynamic of the area.
Capacity Building
Providing information and giving access to
technical expertise in the region can lead to
greater community empowerment. To leverage a
strong commitment to product development, the
team stressed capacity building and found that the
community became empowered by taking part in a
participative process.
Alliance Building
Powerful alliance building, strong investment
and participation are arguably some of the most
important factors in determining the long term
success of a project. As such, the future of the
Amistad project has been strengthened by the
formation of the Quercus Network and the
Indigenous Tourism Network. Not long after
these partnerships were created, the coalitions
began setting their goals and projects based on
50
B. Atitlan Volcanoes
Country: Guatemala
NGO Partner: Asociacin Vivamos Mejor

Asociacin de Reservas

Government
Agency:
Naturales Privadas de
Guatemala (ARNPG)
Universidad del Valle de
Guatemala (UVG)
Consejo Nacional de reas
Protegidas (CONAP)
Interviewee: Jorge Cardona, PiP Project
Coordinator
Site Description
The Atitln Volcanoes region, 130,000 hectares
dominated by the cones of the San Pedro, Atitln
and Tolimn volcanoes, constitutes an ecologically
important section of the Sierra Madre volcanic
chain located in the Western Highlands of
Guatemala.
The volcanic chain encompasses parts of three
ecoregions, namely: the Sierra Madre Moist
Forests, Central America Montane Forests and
Central America Pine-Oak Forests shared by
Mexico and Guatemala. Due to their geographic
isolation, the cones along the volcanic chain
are islands of evolution that function as areas
of plant and animal endemism. The entire
area is located on a combination of private and
municipal/communal lands with limited formal
protection.
The socio-economic context of the area is

complex. During the project cycle, eighty-three
percent of the population was impoverished and
survived mainly on subsistence farming and as low
wage agricultural laborers. At the same time, there
was substantial investment in production for the
agro-export sector, mainly coffee; and tourism,
which continues to be a booming industry driven
by national and international tourists drawn by the
beauty of the lake and the local culture.
The limited availability of land and natural
resources, combined with the high level of
population and poverty continue to be the greatest
sources of threat for remaining forests in the
area. The specific manifestations of this threat are
forest fires caused by unsafe agricultural burning
practices and the use of forest areas for firewood
extraction and building materials, which diminish
the habitats and biodiversity of the areas forests.
Within this context, the project strove to work
with the main stakeholders that had the greatest
impact over the area. These included: communal
landholders that held traditional communal
and municipal lands; small private landowners
that practiced subsistence farming; large private
landowners that were mainly coffee growers; and
the tourism industry.
Overview
Atitln Volcanoes site progress over the PiP2K cycle
was characterized by both its past achievements
and promising potential. The successful course
of development that was initially implemented
at municipal parks, San Pedro and Santa Clara
La Laguna, has been instrumental in the greater
regional expansion of the park system. Parks San
Marcos and San Juan are following their lead while
many other areas are currently being considered for
official park status. The Iquitiu Park was officially
declared in December 2006. Santa Maria Visitation
is at the cusp of being labeled an official park, and
four additional areas are taking the proper steps to
attain this status in the near future.
Successful program implementation was reported

in multiple areas by PiP Project Coordinator,
Jorge Cardona. At the core of these achievements
lies a strong management structure that has
facilitated the steady pattern of improvements.
Throughout the project cycle, participatory
planning in management was identified as a key
lesson learned in many project areas. Through
examination of the key accomplishments, as
well as the lessons learned, benefits felt by the
community can also be highlighted with ease.
Key Accomplishments
Site Development
In order to increase tourism flow in the park
system, infrastructural changes needed to
take place to accommodate the needs of the
travelers while promoting conservation and local
cultures. Successful participatory management
of the park and its funds generated by the
entrance fee system allowed for decisions to be
made rapidly on central issues such as making
facility improvements. San Pedro and Santa
Clara La Laguna were the first municipalities
to build tourist centers and a museum. Each
site designed a program of activities unique
to their surroundings. Both were able to hire
park directors and rangers. San Juan and San
Marcos municipal parks plan to follow in the
developmental footsteps of the two leaders and
are currently building tourist centers.
Product Development
An over arching theme of park development was
identifying what would attract the tourists to a
specific park. The Atitln team implemented a
system of identifying distinctive characteristics
of each park to better develop unique tourist
attractions. While San Pedro boasts themed
educational and experiential tours of fishing,
coffee, flora and fauna, local culture, and natural
medicine, Santa Clara La Laguna targeted its
adventure seeking patrons with the installation of
ziplines and horseback riding.
51
Park Security
One of the most critical needs in the park
systems of Guatemala is professional park
service teams to protect the wildlife, their
habitat and the cultural resources against
poaching, destruction and looting, in addition
to providing security for tourists within the
park. These individuals may also serve as
important role models for community members
on the importance of wildlife and habitat
conservation.
During this project cycle, a park service team,
locally known as the tourism police force, took
steps to improve their visibility within the
park system. To emphasize their commitment
to park security and wildlife conservation, the
team established their headquarters at the main
point of entry in San Pedro Park. The rangers
set up consistent patrol routes and their law
enforcement became more consistent. As noted
by PiP Project Coordinator, Jorge Cardona,
their increased presence has caused a significant
drop in security-related incidents throughout
the park system.
Lesson Learned: Participatory
Planning in Management
Committee Relations
The management systems of the two leading
parks, San Pedro and Santa Clara Laguna were
designed on the same principles. Inclusive
tourism committees were formed that included
the mayor of the municipality, members of the
local tourist and coffee industries and other
entrepreneurs, and Vivamos Mejor. The PiP
team noted that while a solid civil organizational
structure was vital to the success of managing
the park system, the success of these committees
was largely contingent on proper handling of the
delicate committee member relations. Wavering
political leanings could cause great fluctuations
in local government members opinions on
52
issues; the park systems needed to learn to

deal with this patiently, since the municipalitys
cooperation was critical to the success of the
entire system. Although the inclusive design
of the committee lent itself to minimizing this
problem, past political tension caused some sites
to wait up to five years to be declared official
parks.
In spite of these trials however, the growth and
success of the tourism committees exceeded
expectations. The committee design will be
utilized as a model in other parks.
Entrance Fee System
A central pillar of the Conservancys economic
development strategy was designing alternative
methods of income generation at the sites.
While the San Pedro and Santa Clara La Laguna
sites were receiving government grants of
approximately $10,000 for forest conservation,
the site still needed another means to become
sustainable. This resulted in the design and
implementation of an entrance fee system.
During earlier years of PiP2K, there was
recurrent conflict due to the inconsistency
in the distribution of revenues generated by
the entrance fee system. Parties felt left out
of the decision making process and the lack
of participatory decision making was causing
divisiveness among the stakeholders, which
created problems for the PiP team. They
realized that a participatory decision making
framework would be required for finalizing the
entrance fee system.
Subsequently, the fee amount was negotiated
with many players including town business
owners, the guide organization, local artisans,
local tour operators, local government and park
staff. Since the system was readjusted and the
negotiation process became more inclusive,
conflict decreased, cooperation improved, and
the community became invested in supporting

the local park system. While this topic is listed
under Lessons Learned, the implementation
and development of the entrance fee system was
central to the success of the site.
Guide Associations
The team found that quality guiding is one of the
most important factors when introducing visitors
to a park system. Due to their fundamental
involvement with the tourists, the cooperation of
this group is vital to the success of the park and
is highly dependent upon the relationships built
between park managers and the guide association
itself. Communication must be open and clear
to fully understand the real needs of the local
tourism community before beginning with any
type of training.
solely contingent on the political leanings of local

government. As the community received a fairly
distributed portion of park revenues, gradual
infrastructural improvement projects were
undertaken. Community parks were updated and
created in some areas, sanitation systems were
updated, streets and sidewalks were repaired and
city lighting was improved. These improvements
have influenced people to take more pride in their
parks and value conservation as it begins to take
a larger role in the protection of their own value
systems and cultures.
C. Pacaya-Samiria National
Reserve
Country: Peru
As such, dealing with the guide association was

noted as one of the most challenging issues that
faced the PiP management team. The team set
forth with firm ideas about the structure of the
guide association, capacity building and expected
group development. The guides began to feel
as though their needs were not being met, and
as conflict developed, management assessed
their methods of communication. The team
found that a consistently open line of frequent
communication was vital to ensure the guide
associations full cooperation. By approaching
issues more carefully and patiently, an effective
working relationship ensued and guide association
became more invested in its role in the park
system.
Project cycle: October 1, 2001-September 30,

2007
Community Benefits: Investing in the Future

Community infrastructure and cultural identity
have been positively affected as a result of these
multiple efforts. The communitys increased
involvement in the tourism management
committees was able to instill a greater sense of
ownership in the protected area system, as well
as a sense of justice when outcomes were not
Interviewee: Maria Elena Lau, Pro Naturaleza
NGO Partner: Peruvian Foundation for the

Conservation of Nature (Pro

Naturaleza)

Peruvian Society of

Environmental Law (SPDA)

Conservation Data Center at La

Molina Agrarian University

(CDC)
Government
Agency:
Intendencia de Areas Naturales
Protegidas del Instituto Nacional

de Recursos Naturales
( IANP - INRENA)
Site Description
Pacaya-Samiria National Reserve is located in
Northeast Peru in the Department
of Loreto. It lies at the confluence of the
Amazon River, between the Ucayali and
53
Maraon Rivers and contains the entire

watersheds of the Pacaya and Samiria Rivers.
The Reserve covers a surface of 2,150,770 ha,
which represents about 1.7% of Perus total land
area, making it the countrys second largest
natural protected area. The Reserve is the focus
of the largest project supported by The Nature
Conservancy in Peru. It provides an important
habitat for a rich variety of species including the
pink river dolphin, giant otters, South American
river turtle, jaguar and more than 440 bird
species.
There are about 42,000 people living within
the Reserves boundaries distributed in 94
communities. Out of these, 24 communities
are Cocama-Cocamilla indigenous peoples
who have gone through acculturation and
miscegenation processes during the last century.
Around the Reserve, in the buffer zone, live
an additional 50,000 people distributed in
109 communities and three small cities. Most
people from the reserve and buffer zone live at
near subsistence levels and depend mainly on
the areas natural resources for their livelihood.
Main threats to the site include: timber
extraction, over fishing, palm extraction and
turtle egg extraction. Threats are linked with
the local settlers and their subsistence activities,
and working with them to ensure appropriate
legal channels for the commercialization
of managed resources will ensure the
improvement of their livelihoods as well as the
biodiversity conservation in the area.
Overview
The progress of the Pacaya-Samiria National
Reserve site can be characterized by the steady
efforts to become competitive from a business
perspective. The Consortium has taken the
official steps to become fundamentally stronger,
while product development efforts have focused
on dealing with competition, customer service
54
and infrastructure. While not characterized

as such, one of the sites key accomplishments
is effectively identifying their limitations and
taking proactive approaches to manage them,
as seen in the lessons learned section. Among
these are concerns over proper field monitoring,
team development, financial responsibility and
effects of ecotourism, as noted by Maria Elena
Lau, of Pro Naturaleza.
Key Accomplishments
Consortium Progress
Many of the site achievements revolved around
establishing the Rumbo al Dorado (RAD)
Consortium. The Consortium is a four-way
partnership of INRENA, Pro Naturaleza,
the CDC and SPDA, all of which have clearly
defined responsibilities and staff dedicated to
Pacaya-Samiria National Reserve. Throughout
the project cycle, the Consortium took many
important steps to become officially recognized
and operational. The Consortium received a
lodge certificate from its supervisory entity, the
regional tourism bureau, and became licensed
with the local municipality. The Consortium
also opened its first account in both a national
and foreign bank to deposit the funds generated
by tourist services.
After fulfilling the requirements to be accepted
by the state supervisory body, the Consortium
proceeded to commercialize as a tour
operator. PromPeru visited the Consortium
to offer support with promotion, therefore
becoming integrated into the local, national
and international tourism market. This status
also grants them the opportunity to take
part in state managed tourism campaigns and
participate in the international trade fairs
using promotional materials. The news of
their establishment efforts was disseminated
in various national media leading to increased
international awareness of their progress.
Product Development
Strengthening the program from the grassroots
level was an essential focus of the Reserve
site team. The team concentrated on the
fundamentals of financial operations such as
improving their methods of inventory and
logbook management and exploring effective
strategies on saving money. In order to become
more competitive in the local market, a revision
of rates was also undertaken. The team dealt
with costs such as the tourist programs and meals,
based on those of local competition.
Apart from finances, the overall image of the
operation was addressed. Efforts were made
to increase the quality of customer service
by focusing on elements such as first aid
certification and the importance of attractive meal
presentation. Strong tourism administration skills
were also underlined.
In order to complement the improved tourist
services, emphasis was placed on preventative
maintenance of the infrastructure. The
Consortium began working with local settlers to
determine their interest in participating in this
kind of activity. As a result of their enthusiasm,
the sites wooden boats were repaired and
enhanced with new outboard motors. Three
lodging facilities were remodeled, with a special
focus on the restrooms and dining rooms.
The attention devoted to product development
has been instrumental in increasing the tourist
flow. The heightened activity has been generating
income to maintain the infrastructure, tourist
services and local capacity to carry out the
Consortiums administration in the short term.
Capacity Building
Skilled guiding services are one of the most
central elements of the tourist experience in a
park system. Due to the guides fundamental
involvement with the tourists, the quality of this
group is vital to the success of the park and is
highly dependent upon the type of training that is
made available to them.
As such, a training program for Local Tourism

Organizations (guiding techniques, administration
and environmental interpretation) was developed
in coordination with the Regional Tourism
Agency (DIRCETUR) and Spain Cooperation
(AECI). The objective of this program was to
develop another income-generating activity for
local settlers located in the buffer zone. Over 30
people, both men and women, have participated in
these training opportunities.
Lessons Learned
Field Monitoring
The team found that utilizing the expertise of
a trained specialist can be very beneficial for
the people working in field. In the past, the
Consortium had been using tourism specialists
that resided in the city of Lima. The advisors
tended to be well-educated in coastal and
mountain tourism, but not specifically in jungle
tourism. Due to the advisors not working on site
with the field projects and their lack in jungle
expertise, a relationship gap developed between
the advisors and the field teams. The city-based
specialists did not understand the real needs of
the local communities they were working with.
Because of this, the Reserve site team has
adjusted their approach and now contracts a local
tourism specialist that lives in the city of Iquitos.
The specialist travels extensively to all sites to
train local groups involved in the projects and
to ensure that each project is moving forward.
She serves as a valuable resource of information
while holding each group accountable for their
progress.
Team Development
Teamwork has become essential to achieving
sustainable results. Effective training pays off
to help people to work together more effectively
and to accomplish shared goals. To maximize
their teams potential, the Reserve team,
consisting of management and staff, attended
workshops on team building and extracted
many lessons learned from these training
sessions.
55
Teamwork and the importance of being able to

identify ones strengths and weaknesses were
highly stressed at these sessions. The trainings
emphasized the importance of working in
a position that highlighted ones strengths
rather than a position acquired through family
connections. The employees are now conscious
of accepting their strengths and weaknesses
to properly identify which positions and
responsibilities would be most fitting for each
person to maximize efficiency.
The training sessions also targeted the
local staff s concept of competition and
standards. Many local workers had difficulty
understanding why striving for a higher level
of service was essential when their efforts of
the past seemed to satisfy the tourists. After
learning about the level of competition and
how the tourism industry responds, they began
to realize that paying attention to details was
essential to maintaining high standards of
service. Only by operating on that level could
they successfully compete with the challengers.
They learned that each person needs to be held
accountable for his/her responsibilities, because
one poor decision can reflect negatively on the
whole team.
This type of training has been effective
in working with the people of the local
communities, many of which have less than
secondary school education. For this same
reason, one of the largest limitations that
the group faces is dealing with materials and
customer service in English. Further training
is needed to build skills and self-esteem to be
able to deal with guests more confidently and
personably.
56
Financial Responsibility
Competent financial management is a central
pillar of success to many park systems. This
project cycle is the first time that the Reserve
team needed to apply their financial management
skills. In the past, the site did not deal with
large enough sums of money to allocate a
significant portion of their time to managing
finances. Now with more revenue, they
have begun spending more time on resource
administration, prioritizing their spending, and
working with an accountant to handle taxes.
Local Empowerment & the
Effects of Ecotourism
Working with the communities requires
devoting a great deal of time to capacity
building and local empowerment. The site
team realized that in order to get the local
communities invested in the projects, they
must start providing information to the local
people on the positive effects of ecotourism
in their region. The site team highlighted the
positive economic and environmental benefits
of operating a national park. A successful site
must be able to communicate their natural
history while integrating their cultural value
systems. By generating funds, the community
can experience an increased quality of life
through educational and health programs.
The site team also stressed the importance of
sustainable development as a base for present
and future generations. With more access
to information and technical assistance, the
communities will be able to participate in
decision making processes. They will benefit
from being a part of these activities and
ultimately, their investment in the projects
and shared knowledge will contribute greatly
to the smooth operation of the park systems.
ECONOMIC ASSESSMENT OF TOURISM IN

ECUADORS NATIONAL SYSTEM OF PROTECTED
AREAS: A CASE STUDY OF SEVEN TOURIST
DESTINATIONS IN PROTECTED AREAS IN
CONTINENTAL ECUADOR
Arnaldo Rodrguez, Green Consulting
SUMMARY
This paper contains the results of an analysis
of tourism as a way to pay for environmental
services, analyzing its environmental and economic
components, as well as visitors experiences and
the management of seven protected areas in
continental Ecuador. In designing the project,
two key concepts were used: the threshold of
sustainability, and complementary opportunities.
The threshold of sustainability is a concept related
to the minimum level of reinvestment required to
cover the costs of tourism in protected areas. The
analysis of complementary opportunities comprises
those activities allowed by the management
plan that would generate more income for the
system while improving visitors experiences and
creating opportunities for the tourism industry
and local communities. The study contemplated
three scenarios: (1) the continuation of the current
situation, (2) a moderate scenario, and (3) a
positive economic scenario. The as-is scenario
foresees minimal revenue growth that is fragile and
cannot be sustained. According to this scenario,
the system runs the risk of collapsing, since tourism
would become a threat to several of the sites visited.
In the moderate scenario, higher earnings could
be generated starting in the fth year, which would
cover the minimum management costs required to
reach the threshold of sustainability. In this scenario,
a loss of markets is contemplated: a reduction based
on an analysis of sensitivity to increased entrance
fees, but not an increase in overall revenues. The
positive scenario presupposes a model that makes it
possible to provide adequate levels of reinvestment,
generating resources that not only cover the costs
of tourism management but could also be used to
fund other management activities.

STUDY
Payment for environmental services is a exible,
direct and promising compensation mechanism
whereby the providers of the services obtain
payment from the users. Tourism is a form of
payment for environmental services, reected in an
entrance fee in return for experiences considered
desirable by visitors. However, sometimes the
management of these services is inefcient due
to technical problems among local actors or in
parts of the superstructure. These deciencies
lead to leaks in the system and discourage the
reinvestment needed to reach the threshold of
sustainability, reduce the threat posed by tourism
operations to natural capital, provide a positive
and safe experience for the visitor, prevent cultural
erosion, and ensure that management of the
protected areas is efcient and effective.
Between 2005 and 2006, The Nature
Conservancy (TNC), together with
Conservation International, Ecociencia and
Green Consulting, carried out a study entitled
Economic Assessment of Tourism in Ecuadors
National System of Protected Areas (SNAP).
This study contains the results of an analysis
of tourism as a way to pay for environmental
services, assessing its environmental and
economic components as well as the
experience of visitors and the management of
seven protected areas in continental Ecuador.5
Podocarpus National Park, Cotacachi Cayapas Ecological Reserve, Cajas National Park, Cuyabeno Animal Reserve, Cotopaxi
National Park, Machalilla National Park, and Cayambe Coca Ecological Reserve.
57
In Ecuador, tourism in
protected areas has beneted
Threshold of sustainability: The minimum level of reinvestment required to cover the cost of
conservation efforts, the
tourism management in protected areas the minimum capacity, services, and infrastructure
needed to guarantee the conservation of nature, provide positive experiences for visitors and
tourism industry and local
ensure effective management.
communities. However, it
currently poses a threat to
conservation, due mainly to the
lack of tourism management
capacity within the system.
The cost of effective tourism
Complementary opportunities: Additional tourism activities permitted by the management plan,
management in Ecuadors
such as the provision of hospitality services, the sale of food, and rowboat and bicycle rentals,
that increase park system revenues while improving the quality of the visitors experience and
protected areas has never
creating opportunities for the tourism industry and local communities.
been estimated. Despite its
importance, reinvestment
to cover the costs of tourism
management (both in terms
of regular expenditures and
capital investment) has been
insufcient or non-existent
in the sites studied. This was in part due to the
permitted by the management plan, such as the
complex ow of resources within the Ministry
provision of hospitality services, the sale of food,
of the Environment (MAE) and among other
and rowboat and bicycle rentals. These types of
ministries, as well as lack of political will to
services would increase the systems revenues while
reinvest adequately due to a lack of knowledge of
improving the quality of the visitors experience
the nancial realities.
and creating opportunities for the tourism industry
and local communities.
PROJECT DESIGN AND IMPLEMENTATION
Two key concepts were applied in designing
the project: the threshold of sustainability and
complementary opportunities.
The threshold of sustainability of sustainability is
the minimum level of reinvestment required to
cover the cost of tourism management in protected
areas the minimum capacity, services, and
infrastructure needed to guarantee the conservation
of nature, provide positive experiences for visitors
and ensure effective management. Complementary
opportunities are additional tourism activities
6
7
58
The rst step in carrying out the study was to

estimate the investment levels6 and regular
expenditures7 needed for each protected area to
reach the threshold of sustainability. The potential
nancial impact of developing complementary
opportunities in each area was also quantied,
with reference to at least one specic example.
In order to standardize the investment and
regular expenditure analysis, ve aspects of
tourism management in protected areas were
dened: (1) conservation, (2) facilities, services
and infrastructure for tourists, (3) information,
interpreting, and promotion, (4) safety, and (5)
management and training.
Capital investment refers to short and long-term investments in assets that are needed for effective tourism management
Regular expenditures are those that only affect the period in which they originate. They are the constant expenditures required to
ensure the effective day-to-day management of tourism activities.
To estimate the financial dynamics, the financial

flows of tourism expenditures in the protected
areas were analyzed, i.e. the various steps, relations
and amounts being transferred among the various
players in the superstructure. The estimates of the
number of visits to the areas studied, as well as the
analysis of growth patterns, were based on data
from the Ministry of the Environment (MAE).
The average annual growth numbers and the
underlying trends were the basis for preparing the
financial projections.
In order to devise possible scenarios based on
moderate and economically positive increases
in fees, an analysis of the existing demand was
required. One of the methodologies used was
contingent valuation, a survey-based technique
that allows forecasts to be made regarding the
elasticity of demand with regard to changes in the
protected areas entrance fees.
Finally, three scenarios were produced, all with
projections up to 2010.
The scenarios were the following:

Continuation of the current situation,

with no increases in fees and no additional
expenditures to ensure that the protected
areas would reach the threshold of
sustainability.
A moderate scenario based on more efficient
economic growth with the least impact
in terms of loss of demand, and regular
expenditures that would reach the threshold
of sustainability in tourism management.
A positive economic scenario, with a
significant increase in fees and regular
expenditures that would guarantee the
threshold of sustainability in tourism
management.
It is important to note that these simulations

were aimed at finding ways to improve tourism
management in the areas under study and
to establish financially and environmentally
sustainable foundations for the activity.
In order to guarantee the minimum level of

sustainability, it would be necessary to carry
out initial investments in the areas. Investment
costs were estimated based on the five categories
mentioned earlier, and the analysis compared
the existing gap between current investment and
the investment needed to reach the threshold of
sustainability.
The analysis of complementary opportunities
included the creation of models that add
goods, activities and services to the threshold
of sustainability to generate additional income
for the SNAP, the private sector, and local
communities. To determine whether these
models would indeed produce additional income,
preliminary business plans were drafted.
In addition, an analysis was carried out of the
legal framework needed to change the entrance
fees, ensure adequate reinvestment to reach the
threshold of sustainability, and devise mechanisms
for incorporating third parties, delegating tasks,
leasing, and concessions, in order to implement
the complementary opportunity models.
Despite the existence of payments for
environmental services in the form of entrance
fees and operating licenses, plus the existence
of co-management programs, the SNAP has a
financial deficit that prevents its from reaching
the threshold of sustainability. This is how the
three scenarios would affect the situation:
CONTINUATION OF THE
CURRENT SITUATION
Minimal revenue growth is projected. The study
shows that this growth is fragile and cannot be
sustained. According to this scenario, the system
runs the risk of collapsing, as tourism is becoming
a threat to several of the sites. These threats
include damage to the physical environment
(e.g., erosion), damage to the vegetation,
59
pressures on wildlife, noise, pollution, and

excessive concentrations of visitors. In turn,
such damage could reduce the levels of visitor
satisfaction at the sites, compromising longterm revenue sources. Those responsible for
management at various levels have expressed
their concerns over the current model; for
some, tourism has become a burden that goes
beyond their responsibilities. Figure 1 shows
the income generated by tourism, i.e. all the
revenues collected in the protected areas as a
result of tourism activities; expenditures related
to tourism, i.e. all the expenditures that must be
made within the areas to manage tourism; and
the net earnings. of the system, in other words,

the direct contributions of the areas to MAEs
overall budget.
MODERATE GROWTH
Starting in the fifth year, this scenario projects
higher revenues than under the previous model, but
just enough to cover the minimum management
costs to reach the threshold of sustainability. It
contemplates a loss of markets (a reduction based
on the analysis of demands sensitivity to prices)
by increasing the entrance fees, but this would not
affect overall revenues (Figure 2).
$ 710.922,81
$ 402.949,01
$ 696.877,08
$ 1.063.194,36
$ 366.317,28
$ 681.910,20
$ 1.014.925,91
$ 666.209,14
$ 333.015,71
$ 400.000,00
$ 302.741,55
$ 600.000,00
$ 649.938,98
$ 250.199,63
$ 800.000,00
$ 925.158,57
$ 1.000.000,00
$ 275.219,59
$ 1.200.000,00
$ 633.245,12
$ 1.400.000,00
$ 883.444,75
$ 1.600.000,00
$ 968.950,69
$ 1.800.000,00
$ 1.113.871,82
Net tourism revenue from the 7 areas

studied according to the current model
Tourism gross revenue

Tourism-related expenditures
Net revenues for the system
Average expenditure level
for the basic scenario
(US$ 1'498,302.00)
$ 200.000,00
$-
2005
2006
2007
2008
2009
2010
Figure 1. Revenue, expenses and net earnings at present from the sites under study
Net tourism revenues for the areas
$ 600.000,00
$ 400.000,00
$ 811.413,34
$ 639.376,66
$ 1.345.956,31
$ 620.754,04
$ 725.202,27
$ 1.260.614,22
$ 602.673,83
$ 657.940,39
$ 800.000,00
$ 1.020.548,99
$ 585.120,22
$ 435.428,77
$ 1.000.000,00
$ 250.199,63
$ 708.088,30
$ 1.200.000,00
$ 250.199,63
$ 633.245,12
# de visitantes
$ 1.400.000,00
$ 883.444,75
$ 1.600.000,00
$ 958.287,93
$ 1.800.000,00
$ 1.450.790,00
under a scenario of moderate fee increases
Tourism revenue
Tourism expenditures
Net earnings for the system
Average level of expenditures
under the basic scenario
(US$ 1'498,302.00)
$ 200.000,00
$-
2005
2006
2007
2008
2009
2010
Figure 2. Revenue, expenses and net earnings from the sites under study according to the moderate growth scenario
60
THE POSITIVE ECONOMIC SCENARIO
3. There are several complementary activities

that could generate revenue and increase
demand but these are not being taken
advantage of, mainly due to the nonapplication of regulations and laws (such
as concessions and leases), despite the
existence of an appropriate legal framework.
A model would be implemented to allow for the

necessary reinvestment, generating resources that
not only cover the costs of tourism management
but could also be used to cover other management
activities (Figure 3).
4. The decentralization process runs the risk of

fragmenting the SNAP, while NGO-managed
tourism does not guarantee successful
management (Drumm 2002, Wood 1998).
However, it does pave the way for defining
criteria for assessing potential tourism comanagement frameworks for protected areas.
In addition to the results mentioned above, the

study showed that:
1. At present, the tourism budget in most of the
areas under study does not meet their basic
needs, putting at risk the natural capital and
visitor demand for those sites.

PROPOSED SOLUTIONS
2. The study shows that the SNAP is losing

significant revenue by not adopting a
technical approach to setting fees, and by
the lack of facilities for paying for entrance
fees (including the use of technological tools
such as sales via the Internet) and limited
mechanisms for effective collection (including
the use of third parties to collect entrance
fees). These problems are linked to the
absence of an effective operational and legal
framework.
The greatest challenge is changing the current

tourism management model used in the SNAP,
with regular expenditures that can at least reach
the threshold of sustainability while covering the
costs of tourism itself. These are the solutions
proposed:
1. Capital investment must reach the proposed
threshold.
Net tourism revenues for the areas
$ 1.721.683,76
$ 2.361.060,42
$ 639.376,66
$ 1.572.982,75
$ 2.193.736,79
$ 620.754,04
$ 1.455.011,04
$ 1.020.548,99
$ 585.120,22
$ 708.088 30
$ 435.428,77
$ 500.000,00
$ 633.245,12
$ 1.000.000,00
$ 883.444,75
$ 1.500.000,00
$ 250.199,63
$ 2.000.000,00
$ 958.287,93
$ 250.199,63
$ 2.500.000,00
$ 602.673,83
$ 2.057.684,86
under a positive economic scenario
Tourism revenues
Tourism expenditures
Net earnings for the system
Average level of expenditures
under the basic scenario
(US$ 1'498,302.00)
$-
2005
2006
2007
2008
2009
2010
Figure 3. Revenue, expenses and net earnings from the sites under study under the positive economic scenario
61
2. Entrance fees must be revised and adjusted

based on technical criteria supported by an
analysis of real costs and demand.
3. Before the fees are increased, the threshold
of sustainability must be reached through
regular expenditures and capital investment.
4. Some areas need to increase the number
of visitors so that the costs associated with
tourism management within the threshold
of sustainability match revenues and do not
require external subsidies.
5. Current legislation must be enforced in
order to open up opportunities for other
players.
6. Co-management models in some of the
areas studied should be analyzed and, if
successful, incorporated into the other
management models.
7. New mechanisms for charging entrance fees
must be analyzed and implemented in order
to adjust to the needs of current tourists and
also to changes in technology.
8. The collection of entrance fees should be
transferred to third parties.
9. Laws, rules and regulations should be applied
to facilitate reinvestment in protected areas
through tourism, together with current
legislation that allows concessions, the
collection of fees by third parties, delegation
and/or leasing, in order to promote
complementary opportunities.
Given the large number of technical and
sociopolitical variables, economic valuation
cannot provide a complete frame of reference.
For this reason, the first challenge is to carry
out a complementary study that analyzes
how tourism is appraised or valued by the
communities surrounding the protected areas
in order to identify its contribution to local
communities.
62
5. LESSONS LEARNED
In the course of carrying out the study, various
factors were identified that facilitated or hindered
the process. Below is a summary of the lessons
learned from the study, the obstacles encountered
by the work team and some recommendations for
future studies.
OBSTACLES ENCOUNTERED:
1. Absence of standardized information in the
various sources, due to the lack of recordkeeping at each tourism site.
2. Lack of knowledge regarding tourism
and its components due to the lack of
specialized tourism training among those
responsible for managing the protected
areas.
3. Difficulties in identifying the resources
specifically assigned to tourism. Each
protected area has an Annual Operating
Plan, which determines the annual
economic resources assigned to the site and
the investments to be made. However, the
Plan does not specify the amounts assigned
to tourism activities.
RECOMMENDATIONS FOR FUTURE
STUDIES
In order to maximize the impact of future studies,
it is recommended that research of this type
adhere to the following guidelines:
1. The studies should be multidisciplinary,
that is, take into consideration the
various economic, social, legal, political,
environmental and statistical aspects, and
employ appropriate methodologies for
each type of analysis. Future studies should
involve the participation of specialists in all
of the above areas.
2. The studies should be carried out in a

participatory manner, involving stakeholders
from different sectors. The analysis and
conclusions of the study should reflect the
comments of the various actors, including
representatives from the protected areas,
members of the superstructure, tourism
operators, and development agencies, as
well as the needs they have identified by
consensus.
3. In the course of carrying out the study,
the researchers identified a strong need
for improved communication among
the stakeholders. The lack of knowledge
regarding roles and responsibilities caused
confusion at the time of compiling the
information. In an effort to resolve this
problem, participatory workshops were
organized with each group of actors.
6. REFERENCES
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Trillas: Mexico D.F.
Cdigo Civil. RO/ Sup. 104, 2005. Codificado en
el suplemento del Registro N 46 Oficial Ao 1
Constitucin Poltica de la Repblica del Ecuador, 1998.
R.O 1
Diccionario Enciclopdico de Derecho Usual, 1972. Vol.
III. Editorial Heliasta. Buenos Aires, Argentina
Drumm A. 2004. Evaluacin del sistema de cobro piloto
en la reserva Eduardo Avaroa y recomendaciones para
el sistema boliviano de reas protegidas; The Nature
Conservancy, Arlington
Drumm, A., & Moore, A. 2002. Ecotourism
Development - A Manual for Conservation Planners
and Managers, Volume 1, The Nature Conservancy,
Arlington
Eagles, P., McCool, S., and Haynes, C. 2002.

Sustainable tourism in protected areas, guidelines for
planning and management; IUCN The World
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Cambridge, UK
Echeverra, H. 2006. Definicin de escenarios de
alternativas legales y diseo de estrategias para identificar
y sistematizar los vacos legales en temas de biodiversidad
que puedan ser implementados mediante instrumentos
secundarios. CEDA TNC, Quito, Ecuador
Fries, R., Correa, M., Rodrguez, A. & Pool, D.
2006. Nature oriented tourism in Ecuador; USAID,
Washington, D.C.
Ley de Creacin del Instituto Ecuatoriano Forestal y de
reas Naturales y de Vida Silvestre. 1992. Registro
Oficial No. 27
Ley de Descentralizacin y Participacin Social. 1007.
Ley 27. R.O. 169
Environmental Management Law. 1998. R.O. 1
Law on State Modernization, Privatizations and
Provision of Public Services by the Private Sector. 1993.
Art. 6. R.O. 349
Tourism Law. 2002. RO/ Sup. 733
Forestry Law and Conservation of Natural Areas and
Wildlife. 2004. R. O. No. 418, supplement
Lindberg K. 1998. To Sell Cheap Is To Sell Out?,
Green Tourism Conference, Reiseliv, Oslo
Lindberg, K. 2003. In Nature Tourism, Conservation,
and Development in Zwazulu-Natal, South Africa;
Aylward, B. and Lutz, Ernst, Ed.; The International
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Washington, D.C.
Miller, E. 2000. Business planning for environmental
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International: Washington
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Ministry of the Environment of Ecuador. 2005.

Anlisis de Necesidades de Financiamiento del Sistema
Nacional de reas Protegidas del Ecuador. National
Directorate of Biodiversity, Protected Areas and
Wildlife; with the support of Ecuadors National
Environment Fund, The Nature Conservancy,
USAID, Conservation International,
KFW, EcoCiencia, Fundacin Natura,
MENTEFACTURA; Quito, Ecuador
Ministry of the Environment of Ecuador.
2005. Texto Unificado de Legislacin Secundaria del
Ministerio del Ambiente; Corporacin de Estudios y
Publicaciones, Quito, Ecuador
Ministry of Tourism of Ecuador. 2006. Boletn
estadstico 2000-2004. Nacional Planning Office.
Quito, Ecuador
Ministry of Tourism of Ecuador. 2006. Principales
indicadores tursticos 2005-2006. National Planning
Office. Quito, Ecuador
Patterson, C. 1997. The business of ecotourism,
Rhinelander, WI, Explorers Guide Publishing
General Regulations on Tourism Activities. 2002.
Official Document 726
Reglamento general de aplicacin de la ley de turismo.
2004. R.O 244
Rodrguez, L., Ypez V. and Daz P. 1998.
Gua de parques nacionales y reservas del Ecuador;
Proyecto Plan Maestro para la Proteccin de la
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Biodiversidad mediante el Fortalecimiento del

Sistema Nacional de reas Protegidas; Quito,
GEF, INEFAN
Rome, A. 1999. Ecotourism impacts monitoring:
a review of methodologies and recommendations for
developing monitoring programs in Latin America; The
Nature Conservancy; Washington D.C
Salafsky, N. & Margoluis, R. 1998. Measures
of Success: Designing, Managing, and Monitoring
Conservation and Development Projects; Island Press:
Covelo, CA
Stankey, G., Cole, D., Lucas, R., Petersen &
M., Frissell, S. 1985. The limits of acceptable
change (LAC) system for wilderness planning. U.S.
Department of Agriculture, Forest Service,
Intermountain Forest and Range Experiment
Station; Ogden, UT
Constitutional Court of Ecuador. 2002. Resolution
No. 017-2002-TC, Publisher in Official Document
No. 692
Wood, M. 1998. Meeting the global challenge of
community participation in ecotourism: case studies
and lessons from Ecuador; The Nature Conservancy:
Arlington
Zabala, P. 2004. Gestin del turismo sostenible en
el Sistema Nacional de reas Protegidas (SNAP) del
Ecuador; Project MAE/IDB ATN/SF-8182-EC:
Quito, Ecuador.
ECOTOURISM CONCESSIONS IN THE NATURAL

NATIONAL PARKS OF COLOMBIA
Andrs Guerrero-Alvarado, Fundacin Natura

STUDY
SUMMARY
This study describes the design and implementation
of ecotourism concessions in the Natural National
Parks of Colombia as a mechanism to improve
the nancial situation of the protected areas.
Ecotourism concessions were conceived as a contract
between the State and an operator (private, public,
community-based or mixed) to provide lodging, food,
administration of entrance fees, parking facilities
and other complementary services, using the parks
infrastructure. The general model is a Concession
Contract for Ecotourism Services for a ten-year
period, awarded through a public bidding process.
The contract requires operators to make periodic
payments, maintain and invest in infrastructure,
hire local labor, implement activities to improve the
provision of services in the surrounding communities
and purchase food products and handicrafts from
these communities. The results of these concessions
have exceeded the expectations of the National Parks
Unit: the number of visitors was increased within the
permitted limits of carrying capacity, infrastructure
was improved, the projected investment was
increased, and local workers were trained and
hired under better working conditions. The rst
lesson learned from this process is that political
will is essential at all levels. The support of the
institutions, directors and technicians, as well as of
the grassroots communities and social organizations,
has been crucial to this effort. At the technical level,
the most important factor was to use all the existing
experience, information and documentation. If this
information had not been gathered and incorporated
perhaps the design period would have been much
longer. It is important to understand that ecotourism
service concessions imply an ongoing process of
adjustment and learning for all the parties involved,
since neither the Parks Unit nor the potential
operators in Colombia have previous signicant
experience in this eld.
Colombias National Parks System covers more

than 10% of its territory. Its 51 protected areas
contain the countrys most valuable ecosystems
and the second greatest biodiversity in the world.
Although Colombias National Parks have existed
for more than 30 years, the System was not
created until 1994. It is currently administered by
the National Parks Unit, attached to the Ministry
of the Environment, Housing and Territorial
Development.
From 1998, the Parks Unit began to face nancial
difculties due to a 56% reduction in central
government contributions and a 40% reduction
in revenues from tourism. The rst factor was
caused by Colombias scal crisis at the end of
the nineties and the second was due to the public
order and security problems affecting the country.
In 2000, with the support of The Nature
Conservancy and World Wildlife Fund, the Parks Unit
designed a Financial Sustainability Strategy in
order to nd new ways to provide funding for the
Parks System. The strategy designed was based
on four main activities: 1) increasing the Parks
Units own revenues based on environmental
services (particularly water and ecotourism), 2)
increasing the nancial support provided by the
central government, 3) increasing international
funding, and 4) establishing a long-term nancial
mechanism for Colombias protected areas.
In the process to develop the Financial Strategy,
the Parks Unit received support from the
Government of Holland within the framework
of a broader Institutional Strengthening Program
65
for the entity. With resources provided by Dutch

Cooperation, the strategy was implemented
between 2002 and 2005, with some additional
support activities in 2006.
To increase the nancial resources from
ecotourism, the strategy contemplated four
specic actions: a) reform the fees or charges
for ecotourism services in the national parks, b)
introduce new tax incentives for investments
in ecotourism, c) support the development of
business plans in communities that provide
ecotourism services in National Park areas and
d) ecotourism concessions in some of Colombias
Natural National Parks.
CONTEXT ANALYSES FOR ECOTOURISM
CONCESSIONS
The ecotourism concessions in Colombias
National Parks System were conceived as a
contract between the State and an operator
(private, public, community or mixed) to provide
lodging, food, administration of entrance fees,
parking facilities and other complementary
services, using infrastructure owned and built
by the government in the national parks. These
concessions do not include conservation
management or monitoring and control activities
in the areas, since these tasks are the exclusive
responsibility of the Parks Unit.
A number of different aspects were analyzed to
help design and implement the concession system.
First, the legal and institutional framework was
reviewed, including the rules and regulations on
State contracting of services, the responsibilities
that could be delegated by the Parks Unit, existing
environmental restrictions and controls, the links
between the different institutions that might be
involved in the process with the Parks Unit at the
national, regional and local levels, and the relations
with the local communities, particularly those that
could provide complementary ecotourism services.
66
The next step was to analyze the economic

context, including the potential revenues that
might be generated through the concessions
system, as compared with what the Parks
Unit was receiving at that time, and the
projected growth in the tourism sector with the
improvement of the public security situation
in the country. The results of the analysis
showed a great opportunity for the Parks
Unit to improve its ecotourism services and
increase its resources, but also a challenge to
prevent environmental damage due to increased
numbers of visitors to the parks.
The environmental context was analyzed in
terms of the potential impact of tourism on the
ecosystems and the need to reach a wider public
to educate it on environmental conservation
issues.
ANALYSIS OF ENABLING CONDITIONS FOR

CREATING TOURISM CONCESSIONS
Legal and institutional conditions:
-
The park service
National, local, and regional institutions
Economic conditions:
-
Market potential of the natural attractions
Projected growth of the tourism sector
Environmental conditions:
-
Impact of tourism on ecosystems
Conservation education
The analysis of the institutional context revealed

fears among national parks ofcials that the
privatization of conservation efforts would end
up eliminating their institution. To address
their concerns internal discussions were held to
determine whether the Parks Units mission was
conservation or tourism. In these discussions it
was made clear that potential operators would
be restricted to administering ecotourism
infrastructure, thereby releasing the Units human,

technical and financial resources to focus on
conservation work that was not being carried
out due to the demand for tourism services.
This argument helped to clear the way for
implementing the concessions system.
Some local indigenous groups and campesino
communities also expressed concern that the
concession of ecotourism infrastructure would
restrict other environmental services that they
were receiving, particularly water. It was therefore
very important to clearly explain and define
the scope of the concession, which is limited
exclusively to ecotourism and has no impact on
other environmental services generated in the
national parks.
The analysis of the economic context produced
the following results:
1. The 400,000 visitors that the National Parks
System receives on average each year are
concentrated in nine of the 51 existing parks.
About 95% of these visitors are nationals,
unlike other Latin American countries where
a high proportion of the visitors are foreign
tourists.
2. There is a clear need to boost financial
resources, as the revenue obtained from
ecotourism services barely covers 50% of the
costs of providing these; the deterioration in
services and infrastructure are evident and
financial resources are needed to maintain
and improve facilities for visitors and to
increase environmental monitoring and
control in the areas that receive the greatest
number of tourists.
3. Ecotourism offers great potential, since the
analysis shows that people are willing to
pay for ecotourism services double of what
the National Parks are charging, and might
pay much more if services were improved.
Moreover, Colombias tourism sector is
beginning to grow with the improvement
in security conditions and a similar growth

is also expected in the Natural National
Parks. However, despite the potential,
there are doubts as to whether there are
ecotourism operators with sufficient technical
and financial capacity, given that it is not a
traditional tourism business but has special
characteristics associated with environmental
issues.
4. There is a risk that tourism will have a major
impact on the ecosystems; in the parks
with the greatest ecotourism potential the
pressure of tourism is already so great that
the limited resources available are used to
attend to visitors and are insufficient for
control and monitoring purposes. Similarly,
the infrastructure and services are in such
poor condition that more educated visitors
and family groups are discouraged from
visiting, due to the lack of basic facilities that
would guarantee their safety and comfort in
the areas. If the Parks Unit is to attract more
educated visitors and families, environmental
promotion and education must play a very
important role, since the children would
be more likely to visit the Parks when they
become adults.
The results of the abovementioned analyses
provided useful elements to continue with the
process, since they highlighted aspects that had
not been taken into account. They also confirmed
that this initiative offers a great opportunity to
conserve the ecosystems and generate financial
resources for the Parks Unit.
MAKING THE CONCESSIONS VIABLE
Having analyzed the context in which the
concessions would be implemented, the next step
was to assess their viability in four areas: political,
legal, technical and financial. The concessions had
to be feasible in each of these aspects, otherwise
they could not be executed, and to this end a
number of elements were identified and adjusted
to make the scheme viable.
67
In the political sphere, the National Council

for Economic and Social Policy CONPESwas convened. This body is headed by the
President or his representative, the Director
of the National Planning Department, who
together with the cabinet ministers issued a
policy document on Private Sector Participation
in the Provision of Ecotourism Services in the National
Natural Parks to provide political backing to the
process. The concessions were also included in
the National Ecotourism Policy developed by
the Ministry of Industry, Trade and Tourism and
the Ministry of the Environment, Housing and
Territorial Development.
In the legal area, the administrative requirements
of the Law on Government Contracts were
checked and different supervisory entities
were invited to participate in the dissemination
process, including the Ofce of the Comptroller
General of Colombia, the Attorney Generals
Ofce and citizen monitoring groups, and to
audit the process from the outset. In addition,
the Property Rights over the ecotourism services
in the national parks were veried. This review
conrmed that concessions are a viable tool for
the State to administer services provided by the
National Parks.
In the nancial aspect, eight parks were selected

with at least two characteristics: a) they must
contain infrastructure belonging to the State
and b) they must receive a substantial number
of visitors. Based on these criteria the following
parks were selected: Tayrona and Salamanca on
the Caribbean coast; Gorgona on the Pacic
coast; Los Nevados, Iguaque and Otun-Quimbaya
in the Andean zone; Amacayacu in the Amazon
region; and El Tuparro in the Llanos Orientales.
Financial analyses were prepared for each of these
parks to determine under which conditions it
would be feasible to implement the concession.
Finally, to assess the technical viability of the
concessions two further aspects were analyzed:
environmental aspects and services for tourists. To
ensure environmental viability, the Management
Plans for each of the pre-selected concession areas
were reviewed to determine whether the proposed
activities could be implemented within the existing
zoning arrangements. Carrying capacity studies
were also prepared based on the methodology of
limits of acceptable change (LAC), setting limits
on the number of visitors to prevent adverse effects
on the ecosystems. In addition, manuals were
prepared on quality of service to visitors, with
guidance from experts in this eld.
TOURISM OPERATIONS AT TAYRONA
68
THE LEGAL AND FINANCIAL MODEL FOR

THE CONCESSION
Having considered the aspects that would
determine the viability of the concessions and
their application in the eight pre-selected parks, a
decision was made to develop a standard legal and
financial model that could be applied during the
first phase. In this phase, concessions would be
implemented in the Amacayacu, Tayrona, Gorgona
and Los Nevados National Parks.
The general model is a ten-year Concession
Contract for Ecotourism Services, awarded
through a public bidding process. This contract
includes a) the pre-project studies carried
out in the feasibility stage, b) the concession
contract which stipulates the requirements for
operators and the financial terms and conditions,
and c) the technical annexes which specify the
environmental and quality of service requirements
for each particular protected area.
The concession contract stipulates a periodic
payment (annual, half-yearly or quarterly) - either
a fixed annual quota or a percentage of the gross
income received by the operator, whichever
amount is higher. In this way, the concessionaire
will always pay the Parks Unit a minimum sum
and, if the operators gross income should increase
over time, the payment to the Parks Unit will also
increase.
Furthermore, the contract requires the
concessionaire to maintain the infrastructure in
good condition and to make additional mandatory
investments to improve facilities. Most of these

investments are programmed during the first three
years of the project. Finally, the contract requires
concessionaires to employ a certain percentage of
local staff, strengthen the provision of services to
surrounding communities and to purchase food
and handicrafts from these communities. The
following table shows the concession payments
agreed in each park. (Table 1.)
The financial model for the concession is based on
the following principles:
The concessions income and expenses may only
include the operation of ecotourism services.
Since previously the Parks Unit were directly
responsible for administering the infrastructure
and ecotourism services while at the same time
carrying out other environmental conservation
tasks in the area, the revenues and expenses
generated by all these activities were recorded
in general terms for the whole area. To separate
the ecotourism component it was necessary to
identify more precisely the income and expenses
derived from this activity, in order to determine
its viability in the protected area and so that
would not create additional burdens for the Parks
Unit or for the concessionaire. In other words,
ecotourism activities would be managed as a
Business Unit in the protected area, given that
this is the only aspect that would be handed over
in concession. The additional income generated
for the Parks Unit would help to cover the
deficit in other activities such as environmental
monitoring and control, although these would not
be directly charged to the ecotourism operation.
Table 1. Amounts to be paid for the concession of ecotourism services

PARK
FIXED ANNUAL FEE *
PERCENTAGE OF ANNUAL
GROSS INCOME
Amacayacu (Amazon)
US$ 12,000
6%
Tayrona (Caribbean)
US$ 166,000
16.25%
Gorgona (Pacific)
US$ 57,000
10.5%
Los Nevados (Andes)
US$ 100,000
14.5%
*Approximate value in 2007 dollars
69
In other words, the idea was to identify the net

income from services, based on a cost analysis of
ecotourism services.
concessions would offer their communities in the

protected areas, the opposition subsided.
In response to the absence of formal proposals

for the Amacayacu concession, an investment
banking firm with expertise in public concessions
was contracted to identify the possible weaknesses
in the system. The firm endorsed the financial,
technical and legal models, and focused on
selling the project to possible operators. With
the interest generated, the bidding process
was opened once again in April 2004, and the
concession was awarded to the Unin Temporal
Amacayacu, constituted by Aviatur and Hoteles
Decameron. Aviatur is Colombias leading
tourism operator and Hoteles Decameron is
one of the countrys largest hotel chains with
additional investments in the Caribbean and
Central America.
In the second semester of 2003 the Parks Unit

launched the first public bidding process for the
concession system in the Amacayacu National
Natural Park. Although local operators and
some national interested parties were invited to
participate, no formal proposals were submitted.
The process also generated some controversy
among organizations representing national
indigenous communities. However, when these
groups understood the advantages that the
Following the bidding process for the ecotourism

concession in Amacayacu National Natural Park,
other bidding processes were opened. However,
only one consortium participated in these, always
with Aviatur present. This company called for
local partners (public or private), interested
in operating the concession, using different
operating models in each park, - though all the
models involved increased local participation in
the projects, as shown in the following table:
Under the concession system, ecotourism services

may only be implemented if the payment made
to the protected area is equal to the gross income
that the area has generated in the past for such
services. Initially, a lower limit or starting point is
defined for the payment or fees that the operator
should pay to the Parks Unit. In cases where
a parks previous gross income did not allow it
to make a profit, other variables of the model
should be should be adjusted, such as the amount
and timing of the obligatory investments, the
percentage of payment over gross income and the
period of the contract.
Table 2. Models of association for operating concessions

LOCATION OF THE
CONCESSION
(PROTECTED AREA)
PARTICIPANTS
Private
Aviatur (national private company)

Hoteles Decameron (national private company)
Tayrona (Caribbean)
Private - Gremial

Alnuva (local private travel agency)
Santa Marta Chamber of Commerce (Consortium of local
private companies)
Gorgona (Pacific)
Private Civil society l

Avia (Local private tourism agency)
Fundacin Malpelo (NGO)
Private - Public

Termales del Otoo (local hotel company)
Inficaldas (Public institute for local business development)
Infimanizales (Public institute for local business
development)
Amacayacu (Amazon)
Los Nevados (Andes)
70
TYPE OF SYSTEM
The results of the ecotourism concessions have

exceeded the expectations of the Parks Unit. The
most significant results have been:
1. An increase in the number of visitors within the
permitted limits of carrying capacity, especially
in Amacayacu with a 58% increase (from 4,300
visitors in 2005 to 6,800 in 2006) and Tayrona
with a 45% increase (from 110,000 visitors in
2005 to 160,000 in 2006).
2. Improvements in infrastructure and an
increase in projected investment. Operators
have invested up to four times more than the
sum required to restore the infrastructure,
from their own pocket and at their own
risk, since the Parks Unit does not provide
compensation for investments greater than
the sum established in the contract. In
addition, most of the materials and inputs
have been purchased in nearby communities,
contributing to the local economy.
3. Increased benefits for local communities. In
all the concession areas local workers have
been hired under better working conditions,
and have received training to provide a better
service to visitors. In addition, agreements
have been made with local communities to
provide tour guide services and for the sale of
handicrafts, which have increased substantially
compared with previous levels. The most
significant case is in the Amacayacu National
Natural Park, whose indigenous communities
have reported a 150% growth in the sale of their
services and handicrafts in the last year.
4. PRESENT CHALLENGES AND

PROPOSED SOLUTIONS
The main challenge for the Parks Unit
under this system has been to guarantee
a strict environmental monitoring
and control of the operation. It is
not only important to guarantee the
benefits to visitors, the operator and the
communities, but also to ensure that the
areas conservation objectives are being

met and that the impacts of ecotourism
are less than those experienced prior to
implementing the concession system.
It is also essential to strengthen the
grassroots communities so that they can
operate the system themselves, either
in its entirety or some of the related
ecotourism services, as a mechanism
for promoting local ownership of the
process. It is important that the operators
carry out activities to transfer knowledge
to the communities, to enable them to
operate other infrastructure and even
develop ecotourism programs in their own
areas, maintaining their own principles of
social organization.
In the medium term, the results and the
lessons learned from this process will
determine the possibility of exploring
new areas in the Natural National
Parks that have no infrastructure but
have potential, as these could provide
environmentally viable opportunities.
Ecotourism is not simply an activity for
generating economic resources but is
also a way to educate people about the
importance of conserving ecosystems and
achieving sustainable development. By
offering more ecotourism alternatives
and spaces in the national parks, visitors
will recognize their importance and
will change their attitudes towards the
environment.
Finally, this experience may be used to
promote the model in other types of
conservation categories for protected
areas, such as private reserves and regional
parks, based on the same principles of
environmental conservation, income
generation and benefits for local
communities, regarded as essential
elements to achieve sustainable
development.
71
5. LESSONS LEARNED
The initiative to develop ecotourism
concessions in the Natural National
Parks of Colombia has succeeded thanks
to medium term planning and the
ongoing support of the National Parks
Administration. Although the design and
consultation process lasted nearly four
years, the system is producing its first
results after two years of operation. It is
clear that the system must be dynamic
and will therefore require continuous
adaptation, both on the part of the
operator and the Parks Unit, always with
the aim of achieving the conservation
objectives defined for the protected areas.
The first lesson of this process is that
political will is essential at all levels.
The support of institutions, directors
and technicians, together with the
backing of grassroots communities
and social organizations has been
fundamental to this endeavor. Ever since
ecotourism infrastructure was first built
in Colombia, the intention was always
to develop a system to be managed by
experts in that field, so that the countrys
conservation agency could focus on its
own tasks. However, there was great
resistance to this plan, due to fears that
other environmental services would
be privatized, and therefore it was not
implemented. The effort by the Parks
Unit to achieve a common objective,
both within the institution and in the
protected areas with other organizations,
has been fundamental.
By maintaining a continuous flow of
information throughout the process, both
within the institution and outside it, the
Parks Unit made it possible to reach a
72
consensus. The difficulties encountered

previously were generally caused by a lack
of information or misinformation, which
generated resistance that could have
been avoided with effective information
management.
At the technical level, the most
important factor was using all the
existing experience, information
and documentation. It is generally
considered necessary to begin an
initiative from zero, but in this case
a wealth of information was available
at the local, regional and national levels
and was used to contribute to the
technical designs. Biological studies,
university theses, tourism reports,
suggestions by visitors, local community
experiences and many other sources
of information were very important;
these were organized and analyzed
methodically with the aim of structuring
the concession. If this information
had not been incorporated, perhaps the
design period would have been much
longer.
Finally it is important to emphasize
that ecotourism concessions involve
an ongoing process of adjustment and
learning for all the parties. Neither the
Parks Unit nor the potential operators
in Colombia had previous significant
experience in this field. The mere
understanding that this process should
be developed and continuously adjusted
within the established legal framework
and in pursuit of environmental
conservation goals, has been a key aspect
for its continuity and for successfully
reconciling differences between the
parties that are typical of a new business
venture.
SUSTAINABLE FINANCE FOR PROTECTED AREAS:

TOURISM ENTRANCE FEES EDUARDO AVAROA
RESERVE, BOLIVIA
Andy Drumm, The Nature Conservancy and Kreg Lindberg, Oregon State University, 2004,
with updates in 2007 from Juan Ren Alcoba Meriles, SNV and lvaro Baez, SERNAP
INTRODUCTION
This chapter evaluates a four-year pilot entrance
fee program at the Eduardo Avaroa Reserve
(REA) in Bolivia and makes recommendations
for modifications to strengthen the fee program
and for its extension throughout the Bolivian
Protected Area System.
Visitation to natural protected areas is
increasing rapidly around the world and Bolivia
is no exception. Consequently this rising
tourism tide is exceeding protected areas
capacity to keep it within sustainable levels so
that tourism is increasingly being identified
as a threat to biodiversity. To avoid the loss of
valuable biodiversity through tourism related
pressures, and in order to access the benefits
that tourism can generate for protected areas,
it is essential that they have sufficient capacity
in terms of infrastructure, personnel and
management systems in place.
As is the case in many developing countries,
the Bolivian government has not been able to
finance the investments necessary to install
this capacity at the areas facing pressure
from visitation. Unlike many countries
though, Bolivia has not yet implemented a
comprehensive system of tourism-based income
generation mechanisms to at least cover the
costs that visitation creates for protected
areas. Consequently the Bolivian Park System
(SERNAP) is foregoing a significant source of
income which could contribute to much-needed
investments that could result in:
Improved PA management capacity

Reduced threat to biodiversity
Better quality visitor experience
Greater investment in sustainable
development opportunities for local
communities
Higher national and international profile of
protected areas
More employment opportunities for local
people
Enhanced environmental education function
In recognition of the urgent need of funds

to address these tourism-related threats, and
given that the REA is Bolivias most visited
protected area, a pilot entrance fee system was
introduced there in September, 1999. This pilot
was in accordance with Ministry of Sustainable
Development and Planning Administrative
Resolution No. 039/99 of 23 August, 1999 and
based on the recommendations of the document
- lanificacion Estrategica del Sistema de Cobros
para la Reserva Nacional de Fauna Andina
Eduardo Avaroa; Ministerio de Desarrollo
Sostenible y Planificacion, SERNAP 1999.
When the fee system was introduced in 1999,
the above mentioned document estimated visitor
growth for the following 10 years at 12% annually.
In reality REA has reached estimated 2008
visitor levels in 2003. Clearly, the establishment
of adequate tourism management capacity of the
reserve is even more pressing than when the pilot
began.
This chapter presents an excerpt of a report
produced in 2004 to evaluate the REA pilot fee
73
program (1999-2003). A single entrance fee of

Bs. 30 was established in 1999 for all visitors. To
evaluate the acceptance of this fee and evaluate
more accurately the market potential, a price
responsiveness survey was conducted, using both
contingent valuation and contingent behavior
analyses. A total of more than 400 visitors were
interviewed.
Interviews took place in the REA and at Uyuni
and San Pedro de Atacama, the principal entry
and exit points to the Reserve. The surveys were
designed in collaboration with Dr. Kreg Lindberg,
then of the University of Colorado, who also
carried out the statistical analysis of the results. As
there are implications for the Bolivian Protected
Area System as a whole, recommendations for a
system wide fee system are also presented.
FEE LEVELS AND STRUCTURE

Objectives of Fees
Various objectives exist including:

Generation of "profit," with the excess of revenue

over cost being used to finance traditional
conservation activities (at the destination or
at other sites).
Generation of local business opportunities, by

the earmarking of fees to enhance site or
experience quality.
Provision of maximum opportunities for learning

and appreciation of the natural resource, which
may also involve low fees for nationals.
74
Cost recovery, which involves generation of

sufficient revenue to cover part or all of
tourisms financial costs (e.g. construction and
maintenance of a visitor center, signposting,
impact monitoring).
Visitor management to reduce congestion and/

or ecological damage, which would involve
fees high enough to influence visitor behavior.
The Fair Market Value

One of the critical criteria to evaluate for
determining an appropriate fee level at the site
is the fair market value. In order to determine
the fair market value, surveys of visitors were
conducted and a contingent valuation and
contigent behavior analysis was performed.
a) Visitation and revenue trends
Before presenting an analysis of survey
results, it is useful to describe the trends in
visitation and fee revenue for context. Annual
visitation to the REA has risen continuously
since registration began in 1999 and reached
a level of more than 60,000 visitors in 2006.
Some of the increase is likely due to improved
control by park staff, but visitation is expected
to continue to grow. In addition to the high
quality of the natural attractions of the reserve,
it is also located on the principal overland
route linking Southern Bolivia with Northern
Chile. As facilities are developed and better
tourism management capacity is implemented,
it is expected that the quality of the visitor
experience will increase. This will lead to a
higher profile for the Reserve and a broadening
of the market beyond the current dominant
visitor profile and increased demand.
Regarding revenue trends, the entrance fee
level for REA was established at Bs.30 per
person for the pilot, which at the time was
equivalent to US$5. Although visitor numbers
have increased dramatically, revenue growth
has been more modest and in fact has started
to fall. This is because while the fee level has
remained a constant Bs.30, its value in dollars has
depreciated.
b) Contingent valuation survey results
Figure 1 below shows results of the contingent
valuation (CV) question of the survey which
used the dichotomous choice (yes/no) format.
Almost all respondents would be willing to pay
an additional $5. An equal number of visitors
were each asked about increases of $10, $20,
$30, $50 and $75. As expected, the percentage

of respondents indicating they would still visit
decreases as the additional fee increases. However,
the fee would need to be raised by more than $30
before visitation would be reduced by half. This is
noteworthy considering the modest income levels
of half the sample.
c) Contingent behavior survey results

Contingent behavior takes another approach to
estimating visitor attitude to fees, looking at how
visitors would modify their itinerary in response
to a given fee increase. In this case keeping the
same itinerary, changing the itinerary to spend
less time in the REA and canceling the visit to
the REA. The basic CB results are shown in
Figure 2 below. They are somewhat similar to the
(dichotomous choice) CV results above, though
the percentages for still visit/same itinerary
remain quite high even at the highest fees.
More than 95% were willing to pay $5 more than

the current fee of Bs.80 (theoretically $5). In
other words, everyone would pay a $10 entrance
fee. 80% would pay a $15 entrance fee and a
majority would pay a $25 or $35 entrance fee.
Figure 1. Visitor Response to Fee Increase Using Dichotomous

Choice CV Survey
100
90
80
70
60
% 50
40
30
20
10
0
5
10
20
30
50
75
Fee Increase (US$)
Figure 2: Visitor Behavioral Response to Fee Increase
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cancel
Diff itinerary
Same itinerary
10
20
30
50
75
Fee Increase (US$)

75
The following is further analysis of the contingent

behavior results. Elasticity is calculated by
multiplying the coefficient by the price. At the
current $5 level, the price elasticity is 5 * -.012
= -.060. In other words, a 10% increase in price
would lead to a 0.6% decrease in visitation.
The effect of fee on number of days visiting
REA is calculated as e(+X), where e is the
base for natural logarithms and +X represents
the constant and fee*coefficient. This is shown
graphically in Figure 3. Note that this is for
total fee (including the current $5), whereas the
previous CV + CB results are shown for a fee
increase (excluding the current $5). This graph

is similar to the previous CB one above, but
the model smoothes the line, and the effect
of itinerary change is incorporated (a changed
itinerary leads to fewer days at REA, but not a
total cancellation).

Monitoring actual responses to fee changes at
REA will allow us to evaluate which of these
models best estimates/reflects response behavior.
In the meantime, we can compare model results
for general trends and conclusions. For example,
they all tell us that there would only be modest
responses to a $5 increase.
Figure 3: Predicted Impact on Visitation Levels

in Response to Alternative Fee Levels
100%
80%
60%
40%
20%
0%
0
10
20
30
40
50
Fee Level
Table 1: Theoretical Projections of Visitation Levels and Income

Generated for Different Fee Levels
VISITATION LEVELS
50,000 (100%)
50,000 (100%)
47,500 (95%)
45,000 (90%)
41,000 (82%)
29,500 (59%)
76
INCOME GENERATED
@ BS.30 = $214,000
@ $5 = $250,000
@ $10 = $475,000
@ $15 = $675,000
@ $20 = $820,000
@ $50 = $1,475,000
RECOMMENDATIONS FOR
TOURISM-BASED FEES
1) The REA Entrance Fee System
It is proposed that a new Administrative
Resolution be published which contains the
following key adjustments to the REA entrance
fee system:

Increase the entrance fee to $10 -$15

for foreign visitors and establish a fee
of the equivalent of $1 in Bolivianos
for nationals. Based on the results of the
extensive visitor surveys, it is clear that the
vast majority of visitors are prepared to pay
a much higher entrance fee than the current
BS.30. This is especially true if they can see
evidence of the fee they are paying being
used to protect the REA. Figure 3 indicates
that visitor numbers would not be seriously
affected even if the fee were $20. However,
although this might be an appropriate fee
to charge once there is visible investment
in tourism management in the Reserve, it
is likely that to raise the fee to that level in
the near future would cause some degree of
resistance from some visitors and more vocal
dissent from tour operators as they may fear
losing demand.
tour operators to adjust their pricing and

budgeting and to allow time for the change to
be communicated to the market place via guide
books and travel agencies. Local tour operators
indicated that their planning cycle begins in
October, thus it is proposed that the change be
introduced October 1st, 2004. This will enable
tour operators to incorporate the new fee into
their promotional materials and will allow time
for a targeted public awareness campaign.
In order to provide a degree of stability for
the tourism industry and SERNAP staff, these
fees should remain valid for three to five years
before being considered for modification.
During this time, annual surveys of visitor
perceptions, including of the fee level, should
be carried out as part of an impact monitoring
program.
Category
International Visitor
Bolivian visitor

Authorize that payment be made in US$

or the equivalent in Bolivianos on the date
of entry to the Reserve. Official exchange
rates will be communicated by radio from La
Paz or Uyuni on a daily or weekly, monthly or
annual basis as practicable. This will stem the
losses borne by SERNAP due to devaluation
of the exchange rate, bring Bolivia into line
with other countries, provide consistency for
visitors and SERNAP staff, reduce the risk
of abuse of the system by tour operators or
others.
Authorize direct management of revenues

at site level. Revenues should be distributed
in the following fashion:
The lower fee for Bolivians is to demonstrate

that the Reserve is accessible for Bolivians and to
encourage visitation so as to strengthen the value
of the Reserve in peoples consciousness and
promote environmental education opportunities.
Notice of a minimum 6 12 months is
recommended between announcing the
resolution and the implementation date for
Fee
$108
Bs.10
This should be the minimum new fee level. If significant advances can be made in addressing priority tourism management
investment needs in the Reserve in the first semester of 2004, then the fee should be raised to $15 for international visitors.
77
REA Administration
40%
REA Emergency Fund
10%
REA Community Sustainable Development Fund
17%
Trust Fund SNAP
20%
Finance Ministry (IVA)
13%
1) 40% will be divided in order of priority

between
managed by a committee consisting of

the Reserve director, two community
representatives (one from the municipality
of San Pablo de Lipez) and a local NGO
representative. The fund will invest in
projects that will benefit local communities
inside and in the buffer zone of the reserve,
which will enhance the compatibility of
community activities with the management
goals of the Reserve. This fund could be
utilized as match for attracting additional
investment funds from bilaterals.
a. Tourism management plan implementation

b. Capital investments and in REA
administration capacity

$105,000 per year should be considered a

minimum investment level over the next five
years in order to:

establish the minimum necessary level of

tourism management to reduce tourismrelated threats to acceptable levels,
increase the quality of experience for
visitors and
increase the income generation
opportunities for tour operators
including local communities.
2) 10% in a separate REA account for

contingencies and emergencies for use when
tourism income may be sharply reduced or
insufficient to cover basic costs.
3) 20% to a national level trust fund for
the benefit of the Protected area system
and support of other protected areas in
the system, which do not have means of
generating income. FUNDESNAP would
be an appropriate home for this fund as an
NGO (working closely with SERNAP)
can more easily maintain consistency over
long periods of time in the face of changing
government priorities.
4) 17% for the creation of a community
development fund. This fund will be
78
Some, though not all, should be dedicated

exclusively for spending in the Quetenas as
it is expected that other communities in the
REAs buffer zone will also benefit from this
investment. The proportion earmarked for
the Quetenas, because of their special role
in Reserve conservation should be up to 25%
of REAs net SISCO income in 2003 levels
which corresponds to a previous provisional
agreement with SERNAP. It is essential that
guidelines for investment by developed for
this fund to ensure its compatibility with
REA management goals.
5) The current 13% Value Added Tax being

returned to the Finance Ministry will
continue as a contribution of the protected
area system to the governments central
funds;
These percentage distributions should not be
permanently fixed but subject to modification by
REA management. These distributions should
be reviewed after five years, a period by when
consistent investment in tourism management
should produce visible and tangible results

and tourism should be by then, brought under
control.
A table showing the distribution should be made

visible in public places, in SERNAP offices
and on informational materials made available
to visitors. Also, details of how this revenue is
invested should also be made available to the
public including the tourism sector in order to
inspire confidence in the fee system and support
for the Reserve administration.
It is crucial to ensure that the REA not be
assumed to be self sufficient because of its
current income generation capacity as tourism
can easily fluctuate enormously for reasons
beyond the control of Bolivia. The minimum
budget for protection should continue to be
financed by SERNAP Unidad Central so as
to provide a bare minimum in capacity should
visitation collapse, and to avoid over dependence
on tourism.
Visitors who arrive at the reserve control

point without a ticket should be charged
double the relevant fee. Any tour operator
who brings visitors to the reserve without a
ticket should also be charged a fee equivalent
to the sum of all the fees charged to their
offending passengers. Offending twice in
this way should be sanctioned by the REA
administration with potential non-renewal
of the tour operators annual operating
license.
2) Other Tourism-Based Income

Generation Mechanisms

Complete design, inc. consultation and

implement tour operator annual licensing
process in accordance with Article 120 of the
Regulation
Year one - No charge

Year two - $200 per company plus $50 per 5
seat vehicle
Entrance fee ticket sales points should

be moved out of the Reserve (with the
exception of the Laguna Verde Control).
This would reduce administration costs and
reduce security risks to staff and resources. It
would also improve efficiency of collection.
This system should be integrated with

a possible categorization process being
discussed currently which would create two
or three classes of operation based on quality
of interpretation and group size and possibly
other criteria such as age of vehicle.
Tickets should be sold from the clock tower

in Uyuni, the SERNAP offices in Uyuni
and Tupiza and should be made available to
licensed tour operators in batches of up to 50
at a time with advance payment.
Create legal framework and regulations for

strengthening community-tour operator
business for accommodation, food provision
and souvenir shops.
Tickets should also be sold at the Laguna

Verde control for visitors arriving from
Chile. Though it is recommendable that over
time, an alternative be sought in order to
limit cash accumulation in the Reserve for
security.
- Create conditions that make it attractive

to tour operators and community
members to utilize the lodge at Quetena
Chico.
- Establish a second lodge between
Laguna Verde and Laguna Colorada with
community-private sector management
79
in accordance with SERNAP

zonification and guidelines. SERNAPs
legal counsel has deemed that the legal
framework of a concession is not socially
or politically viable. However a license
framework has been identified and is
being used to facilitate the development
of a joint venture ecolodge (IDB/
PRODEM/Fremen/Quetena Chico)
south of Laguna Colorada.
- Improve road conditions between
Quetenas and other REA visitor sites.
- Build Visitor Center in Quetena
- Build toilet facilities in association with
Visitor center
- Establish souvenir shop in association
with visitor center.
3) System-wide Recommendations
Establish mechanism for soliciting and

receiving donations - Friends of Eduardo
Avaroa or Friends of Bolivias Parks. This
should be managed by FUNDESNAP and
can be based on the experience developed
in Baja California and Galapagos with
Conservancy partners.
The system and mechanisms established and

proposed for the REA should be replicated at all
the other protected areas in the system where
visitation is at a level sufficient to justify fee
collection. These are currently: Amboro, Carrasco,
Sajama, Madidi and Cotopata.
Require purchase of special permit for

professional filmmakers wishing to film in
the Reserve. Commercial productions should
pay a fee of $500 per day of presence in the
REA and provide a refundable deposit of
$2000 returnable when copies of the edited
film are presented to SERNAP.
Tourism-based revenues can be a hugely

important boost to the management capacity
and biodiversity protection of protected areas,
leading to international recognition, improved
funding opportunities and greater demand
for visitation which in turn leads to greater
revenues without necessarily increasing visitor
numbers.
Lessons Learned, as of February 2007

80
Tourism entrance fees can improve protected areas management, but only if they are
appropriately managed
It is important to have well-defined policies for revenue collection and management, while
maintaining flexibility in program design and implementation
While revenue from tourism fees should be shared with communities, valuing biodiversity
can be complicated as it may unintentionally devalue those environmental benefits that are
not assigned specific economic values
Sharing economic benefits with communities without strengthening their own organizational
and management capabilities can create risks for protected areas management
Pilot projects must be managed at the highest level of reserve administration and include
opportunities to make adjustments when necessary; otherwise, the pilot project, as well as the
entire process, can be put at risk
Transparency in managing financial tourism revenues generates trust for improved protected
areas management and enhances stakeholder commitments to conservation.
REFERENCES
Alcoba, 2003, El Sistema de Cobros por Ingreso
de Visitantes en la Reserva Nacional de Fauna
Andina Eduardo Avaroa BOLIVIA, Case study
for Sustainable Finance Stream, World Parks
Congress, Durban Sep, 2003
Barracatt, Gabriel, 1999; Resolucin
Administrativa No. 38/99; Ministerio de
Desarrollo Sostenible y Planificacin (Approval of
System-wide SISCO)
Barracatt, Gabriel, 1999; Resolucin
Administrativa No. 39/99; Ministerio de
Desarrollo Sostenible y Planificacin (Approval of
REA SISCO)
Giongo, Bosco-Nizeye and Wallace 1994; A
Study of Visitor Management in the Worlds
National Parks and Protected Areas,; College of
Natural Resources, Colorado State University, The
Ecotourism Society, IUCN, World Conservation
Monitoring Center
Ministerio de Desarrollo Sostenible y
Planificacin; Unknown date c1996; Proyecto para
la Implementacin de un Sistema de Cobros en
las Areas Protegidas del SNAP
Lindberg, K, and Halpenny, E., 2001, Protected
Area Visitor Fees. University of Oregon.
SERNAP, 1999a; Plan de Ordenamiento

Turstico Mnimo; Reserva Nacional de Fauna
Andina Eduardo Avaroa; Ministerio de Desarrollo
Sostenible y Planificacin; Uyuni 13 de agosto,
1999
SERNAP, 1999b; Planificacin Estratgica del
Sistema de Cobros para la Reserva Nacional de
Fauna Andina Eduardo Avaroa; Ministerio de
Desarrollo Sostenible y Planificacin; Uyuni 13 de
agosto, 1999
SERNAP, 2002, Criterios Para la Evaluacin
Tcnica del Sistema de Cobros por Ingreso de
Visitantes de La Reserva Nacional de Fauna
Andina Eduardo Avaroa (SISCO REA)
Tropico, 1999, Estudio Para el Establecimiento
del Sistema de Recaudaciones de Recursos
Financieros por Turismo en La Reserva Nacional
de Fauna Andina Eduardo Avaroa
Tropico, 2001, Plan de Ordenamiento del
Turismo de la Reserva Nacional de Fauna Andina
Eduardo Avaroa
Tropico, 2002 Programa de Turismo REA,
Directrices para la Elaboracin del Programa
Tufino Zubieta, Dr. Jose Luis. 1999 Estructuracin
del Sistema de Cobros en el Servicio Nacional de
Areas Protegidas. Informe Consultora
LT & T Asesores y Consultores, 1999,

Estructuracin del Sistema de Cobros en el
Servicio Nacional de Areas Protegidas.
81
ENTRANCE FEES AND THE FINANCIAL

SUSTAINABILITY OF COSTA RICAS NATIONAL
SYSTEM OF PROTECTED AREAS
Sandra Jimnez, National System of Conservation Areas, MINAE
Irene Surez, The Nature Conservancy
SUMMARY
This study describes the progress and the
experience of a project to validate and implement
a methodology that will enable the National
System of Conservation Areas of Costa Rica
(SINAC) to estimate entrance fees and rates
for specic services provided by the different
protected areas under its responsibility. In this
fee-setting process, the various working groups
organized meetings with different stakeholders
and used economic valuation methodologies to
determine the rates that would be acceptable
to stakeholders. The study began with a training
process in November 2006; its application in
the pilot areas will conclude in March 2007.
The application of the methodology at national
level will continue for the rest of this year and
negotiations with tourism agencies will begin
in the rst months of 2008. The sale of tourism
packages with the new rates should begin in
2009. This process of setting fees has been
successful thanks to the combination of two
key factors: the commitment of SINAC staff
members to learn and familiarize themselves with
the methodology, and SINACs commitment to
promote the process. In the medium and long
term, the project will benet from improved
nancial accounting systems that will more
precisely reect the resources available and
where they were generated in real time. It will also
help to secure ongoing political and institutional
commitment to the process of negotiating and
collecting the entrance fees and reinvesting the
prots in the protected areas. Given the fairly
high cost of these studies, mechanisms should
be found to facilitate follow-up and subsequent
reviews by SINAC staff members. Not all the
protected areas have the necessary technical
conditions for developing tourism, and therefore
other alternatives should be considered, including
payments for water, biodiversity and carbon
sequestration services.

STUDY
The National System of Conservation Areas
of Costa Rica (SINAC) is the government
institution responsible for managing the countrys
renewable natural resources. SINAC uses a
decentralized and deconcentrated management
model that encourages citizen participation.
It exercises control over forests, wildlife and
protected wildlands. Administratively, SINAC
is a system with national coverage, consisting of a
General Directorate and 11 Conservation Areas
with Regional Directorates.
The National System of Conservation Areas
was created in 1998, under the Biodiversity
Law N 7788. Article 42 of this law authorizes
SINAC to charge differential rates to residents
and non-residents in the different protected
areas (PAs). The setting of entrance fees should
reflect the operational costs for each protected
area and the costs of the services provided to
visitors. The fees should also be reviewed each
year and adjusted in line with the consumer
price index. Income generated from the fees
is deposited into a special account established
under the Law for the Creation of the National
Park Service and distributed to the entire
System, based on the concept of solidarity.
SINAC is responsible for administering several
sources of funding including contributions from
the National Budget (Regular), the National
Parks Fund, the Forest Fund, the Wildlife Fund
and Private Resources (Table 1).
83
Table 1. Percentage contribution by

funding sources to the SINAC budget.
Funding Sources
2005
2006
Regular Budget
44
44
National Parks Fund
32
35
Forest Fund
Wildlife Fund
Private Resources
22
19
100
100
TOTAL
The National Parks Fund provides 32-35% of SINACs annual income, while the
National Budget continues to make the largest contribution.
Table 2. Types of contributions (in thousands of dollars) from the National Parks Fund
Type of contribution
2006
Entrance fees and sales of goods and

services
5,218
60%
6,849
67%
Other income
3,434
40%
3,375
33%
Total Income
8,652
100%
10,223
100%
The table above shows the composition of the

National Parks Fund, in which the share of
income generated from entrance fees and the sale
of goods and services is significant. At present,
34 PAs participate in the collection of entrance
fees and the sale of goods and services, which
are used to cover the needs of approximately 70
PAs. To address this situation, SINAC began
to establish a fee system for the protected areas
aimed at giving them greater financial autonomy
and increasing the investment resources available
for improving services for tourists. In 1999, under
the provisions of the Biodiversity Law, a technical
study was initiated to support the establishment
of differentiated rates according to Article 42.
84
2005
Prior to applying this instrument, a team

visited some local organizations to explain the
purpose of the study. Based on the first results
from the PAs that were visited, negotiations
were begun with local, regional and national
tourism chambers. One of the commitments
made in relation to the increased fees was to
reinvest the additional funds in the PAs that
generated them. The final result was Decree
N 30355MINAE of May 2002, concerning
the setting of fees. Annex 1 includes two
tables from the aforementioned decree. The
first table shows the entrance fees to the PAs
and the second shows the fees charged for
other services.
One of the results of SINACs Financial
Strategy was the identification of all the fees
and rates that the System is responsible for
collecting. Of the 25 types of fees, 13 are directly
related to the tourism sector. However, since all
the fees and rates were out of date, a new study
was needed to update them.
With the formulation of the Project
Sustainable Tourism in Protected Areas, The
Nature Conservancy was contracted to prepare
a methodological proposal for establishing
entrance fees for Costa Ricas PAs, and the
consulting firm ECOTIERRA was subcontracted. The purpose of this consultancy was
to validate and implement a methodology that
would assist SINAC in estimating entrance fees
and rates for the provision of specific services in
the different PAs under its responsibility, taking
into account the specificities of each PA as
well as its role within SINACs administration.
In this process to set fees, various working
groups were organized and meetings were held
with different stakeholders, using economic
valuation methodologies to determine the rates
that would be acceptable to all the stakeholders.
The proposed methodology (Figure 1) was
presented in 2004, with case studies in Manuel
Antonio, Poas and Corcovado National Parks.
Since none of its staff members were trained
in economics or statistics, SINAC lacked
the institutional capacity to implement the
methodology. For this reason the consultants
were asked to adapt the methodology so that
it could be applied by SINAC staff with only
basic knowledge of statistics in a way that
would not diminish its technical rigor. This
meant that points B and C of Figure 1 needed
to be better adapted to the SINAC staff s
technical level. Once the methodology was
adjusted, a work plan was defined to reapply
Figure 1. Diagram of the methodology used to

calculate fees in PAs.
A-Definition of objectives
B- Gathering relevant
information and estimation of
parameters
C-Calculation of fees
D-Prior analysis of possible

impacts, public consultation
E- Implementation
F-Review of results
Source: Alpizar and Madrigal, 2005
it. The purpose of this adjustment and its

application was to build capacity within SINAC
and use the methodology in three pilot areas.
With resources from the Project Sustainable
Tourism in Protected Areas of Costa Rica
- a loan agreement that is being negotiated
with the Inter-American Development Bank
(IDB) - the study on tourism-related fees will
be implemented throughout the System of
protected areas.
85
The design of the Project Removing Barriers

to the Sustainability of Protected Areas in
Costa Rica, with resources from the Global
Environment Facility (GEF), included carrying
out studies on non-tourism related fees and rates
in the PAs, such as permits for the use of salt flats
and for installing communications towers.
The work plan established with TNC for the
application of the methodology has involved
several activities, including the selection of three
pilot protected areas (Chirrip, Corcovado and
the Braulio Carrillo- Barva Sector National
Parks), the formation of two work teams at the
central level (4 staff members) plus another group
with personnel from eleven conservation areas
and the three pilot PAs. Staff members from the
Chirrip and Braulio Carrillo (Barva sector)
pilot PAs are receiving training on gathering and
computerizing data in the field and work sessions
are being organized with stakeholders to inform
them about the process and to listen to the
opinions of the local communities surrounding
the PAs. Once this stage has concluded and the
staff members have been trained, the methodology
will be applied to the rest of the System.
One of the objectives of this study is to generate
internal capacity in SINAC so that fee adjustment
is an ongoing exercise, given that it is a long-term
process. The first participatory study to be carried
out with all the PAs that receive visitors took nearly
three years. Fee collections began during the fourth
year.
The present study began with a training process
in November 2006 and its application in the pilot
areas will conclude in March 2007. Preliminary
data on fees is already available for two pilot areas
and the staff members that have participated in
the process are familiar with the methodology,
which they consider easy to apply. National
application of the methodology will be carried
out during the rest of the year and negotiations
with tour agencies will take place during the first
months of 2008 so that these agencies can begin
86
selling packages for 2009 with the new fees.

This process has been successful thanks to the
combination of two key factors: the commitment
of SINAC staff members to learn and familiarize
themselves with the methodology and SINACs
commitment to promote the process.

PROPOSED SOLUTIONS
To ensure the complete success of the study on
entrance fees and rates, work is under way on
the following essential aspects:
1. Improving the financial accounting systems so
that these show the available resources more
precisely and where they were generated in
real time, in a way that is transparent and can
be shared with all involved.
2. A political and institutional commitment to
continue with the process of negotiating and
collecting fees and reinvesting the profits in
the PAs.
5. LESSONS LEARNED
1. Legal backing was essential for initiating the
process to determine fees charged to visitors
to the protected areas and the conservation
areas. In Costa Rica, the relevant legal
framework is contained in Article 42 of the
Biodiversity Law.
2. It is important to raise awareness about
the need to conduct these types of studies
periodically, to avoid outdated fees.
3. Given the fairly high cost of these studies,
mechanisms should be found to enable
SINAC staff to carry out monitoring and
subsequent reviews more easily.
4. Since not all the PAs have the technical
conditions necessary for promoting tourism,
a balance should be maintained between
conservation and income generation
objectives.
5. Since some PAs are not suitable for tourism,

other funding options should be considered,
such as collecting payments for water,
biodiversity and carbon sequestration services,
among others.
The response of the different groups involved in
the conservation of the areas varies, according to
their particular interests. For example, the more
extreme conservation groups completely reject
opening the areas to tourism and pressure for
the fees to be as high as possible to discourage
visitors. Other groups see ecotourism as a means
of subsistence and therefore do not oppose the
charging of fees, since these provide incentives for
tourism. However, they believe that fee amounts
should not be in conflict with their interests. The
dissemination and consultation workshops sought
to establish negotiation processes that would

mediate between the extreme positions.
One complementary and essential exercise for
the success of tourism is the establishment of
a financial accounting system for fee collection
to easily determine the impacts of the activities
carried out with monies collected from visitor
fees. In the case of Costa Rica, cashiers known as
tourism operators are being hired and placed
in the ticket sales offices of the PAs. These
operators are required to have basic knowledge of
administration and tourism and must be bilingual.
The tourism operators are hired exclusively for this
task and are audited periodically. At present, the
PAs where tour operators are employed report the
highest revenues and fee collection has increased
substantially since this mechanism was introduced.
ANNEX 10.1: Entrance fees to Protected Areas in Costa Rica, 2002

Description
Fee for nationals ($)
Fee for foreigners ($)
National and resident visitors from secondary schools who

visit PAs on tours or programmed excursions between the
educational center and the PA.
0.50 per day
Foreign non-resident children, 6 to 12 years old
0.50 per day
1 per day
National and resident children, 6 to 12 years old
0.50 per day
Entry to Isla del Coco Marine National Park for non-resident

foreigners, nationals and residents.
The equivalent in colones
25 per day
Volcn Pos National Park
1.2
7*
Volcn Iraz National Park
1.2
7*
Guayabo National Monument
1.2
4*
Grecia Forest Reserve, Childrens Rainforest
0.8
4*
Braulio Carrillo National Park
1.2
6*
Tortuguero NP and Barra del Colorado NWR (1 day)
1.2
7*
Tortuguero NP and Barra del Colorado NWR (3 days and 2

nights)
3.6
10
Corcovado NP and Isla del Cao Biological Reserve (5 days)
17*
Corcovado NP and Isla del Cao Biological Reserve (1 day)
8*
Ballenas Marine National Park
1.2
6*
Piedras Blancas National Park
4*
Corcovado National Park and Isla del Cao Biological Reserve

(Groups larger than 15 people)
14
87
Chirrip National Park (2 days)
15*
Chirrip National Park (for each additional day)
10
La Amistad International Park
Tapant Macizo de la Muerte National Park (Tapant Sector)
6*
Santa Rosa National Park
1.4
10*
Rincn de la Vieja National Park
1.2
6*
Junquillal National Wildlife Refuge
1.2
4*
Barra Honda National Park
1.2
6*
Palo Verde National Park
1.2
6*
Las Baulas Marine National Park
6*
Cabo Blanco Absolute Nature Reserve
8*
1.2
6*
Cao Negro National Wildlife Refuge
4*
Las Camelias National Wildlife Refuge
1.2
6*
4*
Volcn Arenal National Park
1.2
6*
Volcn Tenorio National Park
1.0
6*
Manuel Antonio National Park
7*
Carara National Park
1.2
8*
Playa Hermosa National Wildlife Refuge
1.2
6*
Tivives Protected Zone
1.2
6*
Cahuita National Park, Puerto Vargas Sector
1.2
6*
Hitoy Cerere Biological Reserve
1.2
6*
Gandoca - Manzanillo National Wildlife Refuge (on state

property lands)
1.2
6*
Dira National Wildlife Refuge National Forest
Juan Castro Blanco National Park
Fees for other services

These fees are not applied when the service is provided by private entities, through concessions or contracts with the State
Description
Students with identification
Fee for Foreigners ($)
2*
6*
Investigators - Assistants and

Students
Individuals
10* - 6*
15*
Description
Daily
Monthly
Rental of research facilities in Murcilago, Centeno and Santa Elena

sectors
10*
100*
Description
Investigators - Assistants and

Students
Individuals
9* - 6*
12*
Lodging in Protected Area facilities (per day)

Description
Lodging in Guanacaste Conservation Area facilities (per day)
Lodging in Tempisque Conservation Area facilities (per day)
88
Description
Fee $
Osa Conservation Area: Bed fee per person in Corcovado National

Park
8*
La Amistad Pacific Conservation Area: Lodging per night in

Chirrip National Park
10*
Camping rights per day per person in ASP
2*
Camping rights per day per person in Corcovado NP
Talks
27*
Description
Camping rights per day per person in Chirrip National Park and
La Amistad International Park.
Description
Nationals and Residents
Foreigners
The equivalent of 5 dollars in colons
5*
Fee per hour $
Microcomputers: user fee per microcomputer
1*
Microcomputers: For internet access
2*
Parking: For each light vehicle
0,50*
Parking: For each minibus
0,60*
Parking: For each bus or other heavy vehicle

Description
1*
Daily fee $
Laboratory installations
2*
Storerooms: Use of storage facilities
2*
Diving: Within the maritime zone of Isla del Coco National Park
(per person)
10*
Diving: Within the maritime zone of Isla del Cao Biological

Reserve (per person)
4*
Rental of tents for camping, per tent
7*
Rental of boots and ponchos, per boot and poncho set
2*
Rental of surfboards, per board
20*
Rental of caving equipment: Applies in Barra Honda National Park

(per person)
Conference rooms
Rental of luggage lockers
2*
13 dollars or the equivalent in colons
1
89

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South America Conservation Region

External Affairs Technical Publication No. 1

TOURISM, PROTECTED AREAS

Cartagena de Indias, Colombia

FROM THE AMERICAN PEOPLE

Contributes to the financial sustainability of

More specifically, the PiP tourism component

These experiences have focused on developing

from Parks in Perils tourism and ecotourism

Overview of Lessons Learned and

Tourism and Conservation

Strengthening Local Communities to

Municipal Park as a model, measures were taken

destination to specific market segments, and form

the transparency of tourism committee activities

and financing to do so. The reality is that often

Lessons Learned in Community-Based Tourism

Tourism planning and management in protected areas should involve multi-stakeholder

Capacity building for developing technical skills in tourism management, as well as

Ongoing education and outreach to local stakeholders regarding the benefits of

Additional economic alternatives to tourism also need to be developed to diversify local

Preparing a business plan is an essential precursor to investing in tourism businesses.

Ecotourism infrastructure, including healthy and diverse natural areas, must be

A thorough understanding of indigenous peoples priorities and interests is essential

Business plans need to include all investment

tourism on protected areas and identify ways to

councils found it helpful to develop strong

planning and management. Traditionally, most

Developing Financial Strategies for

are often not clear, nor accounted for. Typically,

for the tourism industry and communities.

indicated that concessions can increase park

currently not properly exploited, for significant

Lessons Learned in Tourism and Financial Sustainability of Protected Areas

A range of tourism-based mechanisms including entrance fees, concessions,

The development and implementation of revenue generation systems must count

Ongoing education and outreach with local stakeholders is recommended to avoid

Economic and market-based evaluations of tourism in protected areas are needed to

The Ecotourism Conservation Support

Conservancy websites. A special print run of

from project experiences and research findings

this project model once donor funding ends is

Many of the lessons became evident as field

Community-based tourism which fulfills

An increased focus on setting more realistic

The focus of more recent projects is to support

for many rural communities money, per se, may

It is equally important to note that through

Figure 1: Diagram of the Ecotourism Management and Development Planning Process

Complimentary services, sanctioned by

When conducting such analyses, it is important

Tourism and Ecotourism Publications

Ecotourism Development - A Manual for Conservation

Volume I - An Introduction to Ecotourism Planning,

Volume II - The Business of Ecotourism Development

LESSONS LEARNED FROM THE ECOTOURISM

1. DESCRIPTION OF THE CASE

The Kichwa (or Quechua) community of

3. PRELIMINARY RESULTS DESIGN

DEVELOPMENT OF NEW PRODUCTS AND

Visits to the Maucallacta Ruins

Two sections of the Business Plan outlined

such as ecotourism leaflets, brochures, and

Within the framework of the PIP Program,